I have a couple of Android Market applications. One, ToMarket - a shopping list app, has been around for about 7 months. In the news lately there has been talk about the market not providing enough income for the big time application dev companies. I can tell you that with the release of the Droid and several other devices in the past weeks, the market is really taking a turn for the better. There has been a significant increase in downloads lately, there is no doubt about it.
It is only a matter of time - the Android Market will gain the user base to provide developers with the numbers to make a few bucks. With the ever increasing carrier and device lineup, developers should continue to look to android as a direct competitor to the iPhone juggernaut.