Maybe because of memory constraints. JIT output can take quite a bit of memory. Furthermore JITting stuff to aggressively can significantly increase startup time of apps; for desktop/GUI apps it's usually better to apply Just-Too-Late compilation: don't JIT things early but JIT things later after the app is already running.
For a relatively constrained device like an Android handset, I'd have thought it would be better to compile the bytecodes into an optimised native executable at installation time?
Then why post it here? "It could exist in a future phone at some point, it doesn't involve you. But here's a link, for you to read." If I shouldn't care, then why should I care?
Well I know it doesn't necessarily mean anything but Benoit Schillings (of BeOS and Qt fame) is their CTO, and by all accounts he knows a bit about coding. Which, while not proof of anything in it self, at least shows they at least in theory have the chops to pull something like that off and probably aren't completely making shit up.
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[ 2.7 ms ] story [ 27.0 ms ] threadEdit: I see they're working on it (although still in secret): http://www.h-online.com/open/news/item/Android-s-Dalvik-to-b...
(download links? specs? papers? anything? bueller?)