Because Dalvik 2.0 is virtualization running through the cloud, it is perfect for the connected home market. Virtualization requires horsepower in the ways of CPU and GPU support, which TVs do not have. So, the heavy lifting is done in the cloud.
Myriad did not work with Apple in any way, shape or form on Alien Dalvik 2.0. Hence, it is not optimized to anything on the iPad. It runs a little slow (partly because of the network at the San Diego Convention Center) but it is definitely more than just a proof of concept at this point.
