Up until now, most Android phones have been very week in gaming performance. You can thank HTC and Qualcomm for promoting and making such weak GPU's. It's also the reason why the UI of Android has not been GPU accelerated.
Game developers are going to love the Tegra 2 chip. Not only will it be in most Android tablets, but it will also be in a lot of phones that will be made in 2011 by Motorola, LG, Samsung and even HTC. The Tegra 2 chip also brings Unreal 3 capability, which is going to make it much easier for game developers to create 3D games with rich graphics. The Tegra 2 chip is going to be so great for developers, that you'll probably see a lot of Android games available only for Tegra 2 capable phones.
This is what's so great about Android. Manufacturers are making devices that are some of cheapest smartphones around, but they are also making smartphones with the best of specs from any other phones with another OS on the market. Compare that with WP7 where all their phones are going to use the 1st gen Snapdragon with the very weak Adreno 200 GPU.
Tegra 2 is coming, and 2011 ss going to be one hell of a year for Android gaming and polished apps.
Check out the link at the bottom, too: