On Android, you can definitively develop and compile on the device itself. See for example: http://www.android-ide.com/

What a nightmare, though.

Have you tried programming on the original Eee laptops? I'd take a 10" tablet with a bluetooth keyboard over that 7" screen and tiny keys any day.

I've tried touch based UIs to do actual work, and I just can't handle it.

Android can be quite well driven by the keyboard. Even alt-tabbing between applications works.

Personally, even a touchpad compared to a mouse will slow me down significantly.

It's possible that I could be somewhat productive on a tablet in an emergency, but not as my main machine like Apple suggest people should do.