Android already does flow based layout by default, taking its cue from the web itself. Web apps have been dealing with this problem space for many years, and in some ways have conquered it.
Web apps are definitely the place to start looking for solutions, since they always have resizing forced on them. But very few web apps can handle a lot of resizing (particularly down to phone resolutions) without ending up looking like they're obviously the wrong size. This shouldn't be too much of a problem for apps designed to start at WVGA or smaller, but like most things Web-related, it still completely ignores the touch aspects.
iOS has the concept of "autoresizing", which allows for relatively simple flow-based UI. Could you explain (or link to) Android's implementation of the concept? I'm interested to see how it works.