For the past three months, my income from Android development has produced a livable wage. And the good news is that it keeps increasing month over month.
The past three days I've seen a very nice jump in the payment rate for my ads, which has generated my first three +$100 days in ads alone. Sales on top of that are putting me close to $200/day. I don't think there are too many indie app/game developers who wouldn't be happy with that revenue stream.
There are periodic dips in usage and sales day-by-day, but the week-by-week trend is sustained growth. I would expect some kind of bump from Christmas this week, though I honestly have no idea how many people gift smartphones (buy your loved ones an Android phone!). Hopefully tons of new users will activate their shiny new phones Christmas morning and take a virtual visit to the Android Market to buy a bunch of new apps.
I would love to hear reports from other Android devs. A few months ago it was mostly doom and gloom, but if I'm seeing this kind of growth, and none of my games are even ranked in the top 50 overall, then there have to be others who are making some respectable revenue.
I'm not dying to have a ton of new competitors, but in general I would like to see more devs come to the platform. The growth of the market is an indication that that's already happening. I think an increase in both the quantity and the quality of apps will in general be good for everyone, users and devs alike. And I'd like to hear more success stories...I know they're out there.