It's not just running Android -- it's running Cupcake! That alone should make it the envy of every G1 owner, though Koolu's custom-loaded FreeRunner lacks 3G and a physical keyboard (which, when you think about it, pretty much makes Cupcake a must anyway so you can type stuff). Ultimately, your average Joe still isn't going to want to use a FreeRunner day in and day out -- regardless of what operating system it's running -- but it's really awesome to see that the right hardware and software platforms are now out there and readily available for quick 'n easy hacking.
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Koolu's Android-equipped FreeRunner hands-on