Pretty much. That's why I originally suggested someone just make a low-class gaming worthy linux mini-PC. Then began the war :p
And the thing is, just because it's running Android doesn't mean they have to even have anything to do with phones or tablets. It's an operating system. The hardware isn't going to rival the 360/PS3 or whatever for a while, not at the prices they're building for anyway but they could carve out a device which aimed for something, anything different and promote it as easy to build for -because- it's Android and forget about all the phone games that are already available because what about them?