Yup you've pretty much got it with that, here's the exact interview quote from Rubin on the subject:
Q: What were the primary development challenges for Android? Did you design it with high-end or mainstream hardware in mind, and what are the system requirements?
Rubin: When we built the system, we wanted it to be as flexible as possible. We did a lot of work to write our own library, and it's 250 kilobytes, not 3.4 megabytes.
We took a lot of those types of considerations when we were developing the platform. The platform is capable of running, as I said, on kind of mid- to lower-end devices as well.
We feel that one of the platform's distinguishing features is how it handles access to data. I talked about the mashups on the Internet and everything else. So, although the platform can run in a stripped-down fashion on mass-market phones, we think that the initial devices will be mid- to higher-end phones just because of the data access capabilities of the platform.
The minimal requirements are 32 megabytes of RAM, 32 megabytes of flash, and a 200-megahertz online processor. There are companies within the alliance working to bring that to even lower-power phones.
I have a hardware that has far less things that need to be supported.
For example I need only to support:
_ a custom sensor
_ bluetooth or wifi
_ maybe an http server
_ a color touch screen
_ and maybe a small (14 keys) keypad
would it be possible to put this in lets say 4MB of RAM and 4MB of flash?
And one more thing... I read that Android is under Apache public license and this means I don't need to open certain parts of the code that are proprietary to my company.
Is this true?
what about drivers? (I need to write the sensor driver)