Mike uploaded a video of Android applications running natively on Jaunty UNR:
(didn't realize pgo cuts videos, click here to see it)
The applications are very responsive thanks to the accelerated Android drawing engine (and that means they aren't a burden on the CPU either).
The video shows the Android browser working like normal, which points to the next challenge in getting everything working great: piping the services and the filesystem on the host computer through to the Android runtime so apps can take advantage (and be more useful :).
If you have any questions or just want to bug Mike about getting his packaging finished, you can leave a comment on his blog post.
Update: Added link to video