It is done. Google Earth for Android has been published. I just ran it on my Nexus One and it seems to work fine. Very smoothly, nice 3D graphics and all the layers in there with your favorite restaurants. Zooming in and out as well as panning in the 3D world works totally fine. Besides that it is not doing much, but it shows your current location on the earth, of course. Still, well done Google!
Check it out here: