The new home screen, as seen on the Nexus One, is excruciatingly slow on the emulator due to the software OpenGL renderer, so we packaged the older home application, as seen on other "stock" android.
The LiveWallpaper chooser is part of the emulator system image. It is accessible through the "old" home application, which of course does support Livewallpapers. As for the live wallpapers themselves, they also use the OpenGL and are very slow so we did not include them either. However in the samples folder you can find CubeLiveWallpaper that will show you how to create them. Xav -- Xavier Ducrohet Android SDK Tech Lead Google Inc. Please do not send me questions directly. Thanks!
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