Google released Android SDK preview today, have a look at the feature overview video. From the application development demonstration, and technical presentations (video 1, 2, and 3), you can see that Java (as a programming language) is almost everywhere, but on a different virtual machine--Dalvik Virtual Machine, a register-based (typically JVM is stack-based) virtual machine that optimized for mobile devices. Another interesting thing is, it supports OpenGL ES 1.0 specification, and the "Surface Manager" could seamlessly composite 2D and 3D graphic layers from multiple applications.

Here is the architecture of Android platform (click to enlarge):

You may download the SDK here.