As you probably know there's been no official or confirmed link between Android and the Atom chip, but i can't see why Android wouldn't run fine on the hardware.
As you noted Nokia are indeed part of the OHA, and reports suggest that they're not currently working on any other mobile chip sets.
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The processors, which use an architecture completely revamped for efficiency, are designed for PDA-sized Mobile Internet Devices (MIDs) and what Intel calls a new class of affordable, infocentric mobile computers Intel is calling netbooks.
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“This small wonder is a fundamental new shift in design, small yet powerful enough to enable a big Internet experience on these new devices. We believe it will unleash new innovation across the industry.” -Intel chief sales and marketing officer Sean Maloney.
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Sounds like a perfect fit to me.
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