As a developer of Android games here is my reaction.
FOR THE LOVE OF GOD NO!
Looks like there is another screen resolution that I am going to have to support. This is the first one that really annoys me though, QVGA/FQVGA/WVGA support was trivial. At least those resolutions were all rectangular and I put together my games to be resolution independent assuming rectangular screens. Now we see a square screen and I am probably going to have to change my layout. My guess is it will be a 320×320 resolution like the Palm Treo Pro, but I guess we will all have to wait and see.