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Use of Android Backup Service Is Insecure
The non-opt out backup of the wallet using Android's backup service is a security hole. The documentation states:
Caution: Because the cloud storage and transport service can differ from device to device, Android makes no guarantees about the security of your data while using backup. You should always be cautious about using backup to store sensitive data, such as usernames and passwords.[1]
Using this backup for the wallet is inappropriate.
[1] http://developer.android.com/guide/topics/data/backup.html
We agree, and will not be using this in future versions :) Thanks for the feedback, I really appreciate you using it and trying it out!