it looks like this is (going to be) for making self-contained android applications, packaged, and distributed through the market (possibly?). ASE as it stands requires ASE for your code to run, plus it has to download the Python interpreter separately. This project (a part of a multitouch multimedia framework project) is aiming to do this all a bit different and it seems embed the entire interpreter. i'll be excited for it!
ASE (is now SL4A) has a Python interpreter module, but also has support for other languages like Beanshell, Lua, perl and Javascript. This project may be a tighter integration.