XBMC will run fine on my phone and with a change of skin not to hard to get around except the only problem is the XBMC keyboard which is way to small and is the fly in the ointment in using XBMC on a smartphone even a with a 5inch screen why can't this be made bigger
I believe the long term goal is to allow a native Android on-screen keyboard to be used, like it is now on jailbroken iOS devices. It just hasn't happened yet.
I am using the skin "Mimic". It was much easier to select menu items then the stock skin. I also have it zoomed (under skin settings) which makes selecting menu and keyboard items a breeze.
Add-on:Mimic (wiki)