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Like the WordPress app for the iPhone, WordPress for Android works with both WordPress.com blogs and self-hosted WordPress.org blogs. You can manage multiple sites, add or edit content, and also manage and be notified of comments.
Check out the video WordPress has created:
If parts of WordPress for Android seem familiar to veteran Android users, it might be because it's based on the popular wpToGo app. WpToGo actually served as the foundation for WordPress for Android, and the separate project will be discontinued, with all future efforts moving toward this new "official" client.
If you want to contribute to the WordPress for Android development process, you can check out dev.android.wordpress.org.