Intel Says Android 4.0 for Smartphones, Tablets Ready
Not sure if Medfield would be used for Tablets...from my recollection, it would be lower-end Mobile Atom processors. I guess we will find out soon.
As Marsavian indicated, there are dual OS (Windows/Android) Tablets already available. But they use much earlier versions of Android. This will be the first time Intel devices can be on par with other tablets in terms of having the latest Android OS.
BTW, here is Intel's trump card. They have been mentioning that the next generation of Ultrabooks in 2012 will start coming with touch-screens. This is when we start seeing a whole range of i3, i5, and i7 "convertible" notebooks which can be used as both regular laptops as well as tablets.
For $699, probably discounted at the lower end to $599, we should be able to get a sleek 15mm ultrabook which will serve both as a notebook computer and a tablet. Some other reports indicate that Apple is moving in that direction too...it is impossible for Apple to continue iPads in huge volumes (with prices of $499 upwards) and provide features more-or-less similar to Kindle Fire. Apple will have to provide these notebook/tablet hybrids to command a premium price. Which will, of course, need more high-end Intel processors.
Intel still needs to keep improving its graphics capabilities to minimize AMD's presence in this game. And extend its power/performance capabilities to the Atom line to reduce ARM to a niche market space.