To update on this. The project sounds very interesting, and we hashed around a bunch of ideas how one would go about getting it started. Then a stumbling block hit.
This would likely be as battery intensive as a voice call. Since the mini USB would be in use to collect the data, is the app still useful if
A - it can only be used for a limited time while you're driving
B - Will a consumer accept the fact that using this may very well eat the battery enough that the radio will no longer function.
In my/our/his opinion, this is a very interesting idea for an application, and once the power supply factor was worked out would likely appeal to men 18-25 (who also happen to be the Android target audience). Solutions could be manufactured that allow direct connection to the phones power supply, such as a new battery cover with a charging port attached directly connected to the battery contacts, but it's likely beyond the scope of a small development team.
He suggested you present your idea to
Pertronix or another high preformance auto electronics maker. Stress the point of the Droid's industrial look and feel, and point out the appeal the device would have to tuners and other folks who like to tinker, as they are likely to have cutting edge electronic devices anyway. Use the Droid as your selling point, and not the Hero or Eris
You've got a good idea in your hands. I wouldn't give up on it. If you ever get to the manufacturing and testing phase, I'd love to try it on my LX, I don't believe that 18 mpg rating
Hope this helps.