I've been using blender for models in the android game I'm making. Don't see a reason to spend $ 40 when there is a fantastic open source alternative. Kind of like buying windows server instead off just using linux.
I've been watching the blendtuts videos. My game only uses basic models since I want to support older generation handsets, so I'm not making use of any of the advanced blender features. But, it has been well worth the effort learning Blender. Its really a great tool.