Is trying to attract developers to a niche micro-platform a better business move? Android market might be crowded but it is for good reason. Getting developer mindshare is very very hard.
I agree that it probably won't become a huge success, but I think that if they switch to Android they'll end up with nothing since there's nothing special about the hardware. They'll lose the interest they have now and no one will have a reason to choose this over a cheaper and more available device from another manufacturer.