I have an iPod Touch and I'm continually amazed at the flood of games being released for it. In one week, there are more quality games being released for the iPhone than in the Android market's entire history. There are entire forums like toucharcade.com just dedicated to gaming on the iPhone.
I also think the Android's game selection is actually poorer than any of the other smart phones on the market. Even Blackberry gets games like Doom II RPG. The one good thing about Android gaming would be the emulators. They really are fantastic, and having a physical keyboard like the Droid does makes all the difference. But for Android specific games, look at the gamespot mobile gaming section and the Android selection is pitiful even compared to Blackberry or Windows mobile, let alone the iPhone.
I hope that changes since I know Android phones are selling well. But I don't see how anyone can be satisfied with the status quo when you see how much better the selection is on other devices. I think the Droid is superior to the iPhone in many ways, but as for gaming it's not even in the same league yet. Not even remotely close.