Google's Chris Pruett talked about writing real-time games for android in Google I/O 2009 and again in 2010. He talks about Java performance on Android among other topics. He also made a game, Replica Island, in Java and you can download the source code to get an idea of how an Android Java game might look like. His blog about the game also has several insightful articles.
The typical pitfalls are similar to those of writing in other garbage collected languagesgarbage collected languages, you use a object pools and allocate stuff in advance to avoid having the GC run when you don't want it to. Methods are virtual by default in Java and it helps to mark them as final when you don't need to override them. The Android Eclipse plugin comes with some neat tools to help you profile your application and monitor heap allocations.