Agreed, just it adds another "I need to test this" configuration for devs. Have you found that many apps don't support this resolution?
Google actually tracks screen sizes of devices that access Android Market:
http://developer.android.com/resources/dashboard/screens.htm...
It appears that 240x320 (small + low density) accounts for 2.3% of users.
While unrelated to UI, another very handy page tracks Android versions in use out there. It looks like 2.2 has become the most common version in the last month: http://developer.android.com/resources/dashboard/platform-ve...