+1! That would rock!
I was reading over at the coreavc forums (very nice h.264 decoder codec) that they were interested in making the codec available for android and that the problem is the codec / media libraries or whatever that are built into the android for the standard mp3, aac, h263-4...etc are not very accessible by developers. Whats there is what you get, period.
Though I hear perhaps that google is working to improve on this area and possibly let new codecs be added into the android system. This would allow programs like vlc to actually work as well as let us do cool things like play .flac files!!!!
I'm actually very surprised that the media libraries for android are so closed off. For an open source system that's pretty funny in a way.
Basically from what I understand the problem for a program like vlc or any other codec for multimedia lies on googles end in the os itself.
Personally I think that while android in general is an awesome OS, I think whoever designed the multimedia portion really dropped the ball. Doesn't seem to have any modularity to it at all, no way to add support for other formats...etc.