It can, but it would suck. You need a bigger monitor than a chromebook has for android development. You definitely need at the very least, 2 monitors.
Also, the CPU would be so slow on that thing that eclipse would run like molasses. IntelliJ might be faster but I kind of doubt that too. Of course, you don't need an IDE, but lets face it: most people developing for android are going to use an IDE. Not the sdk tools + vim or emacs. Those really aren't sufficient because you need a visual tool to develop the UI. Yeah, I code it in XML, but you need a preview before pushing to the device because building and deploying an android app can take almost a minute sometimes. Not fast enough to change one XML attribute and test....
If you're doing 3D game development, you're never going to touch the Android native UI stuff.
And the difference between vim and Eclipse is a huge gap. Lots of people are right in the middle and use things like Geany or Sublime Text 2.
Not saying it's optimal either, I'm just saying I've written quite a bit of code on a Chromebook and it isn't unbearable. The only people I would advise it for though is webdevs, as they avoid the sluggish compile times.
Also, the CPU would be so slow on that thing that eclipse would run like molasses. IntelliJ might be faster but I kind of doubt that too. Of course, you don't need an IDE, but lets face it: most people developing for android are going to use an IDE. Not the sdk tools + vim or emacs. Those really aren't sufficient because you need a visual tool to develop the UI. Yeah, I code it in XML, but you need a preview before pushing to the device because building and deploying an android app can take almost a minute sometimes. Not fast enough to change one XML attribute and test....