I think there needs to be two sets of Android phones, high end 3.0 and low end 2.2 so that it doesn't become too fragmented.
The high end games will have tablets and 4inch+ high end phones all running on 3.0 so I'm sure that's where a lot of the games developers will gravitate.
The lower end phones running 2.2 will be rivals for the outdated iPhone. So they'll need a lot of those simple gimmick games. I have a feeling that's how it'll breakdown next year.
The problem is the technology advances need to slow down, if you buy a HTC phone today it'll be out dated in 2/3 months when they release the next phone. So when we're on 4.3 inch 2ghz phones is there any need at all to make a faster phone? No, I think next year will see the slowing of the hardware advances and more focus on lowering weight and increasing batterylife, innovative new screens etc..
Exciting times ahead, though tablets don't interest me I'm a huge lover of the netbook once you get beyond phone size I want a keyboard. I love my Samsung NC10 I'm typing on now. Though I hope the IBM vs Apple plays out again and their company loses out big time in market share, no less than they deserve.