We'll freeze development of the pedometer project. The G1's accelerometer sensor only does 4 to 7 reading per second. This means that it is possible to count steps for slow walking but not fast walking or running.
We will release the prototype code we have so far, but no Android Market application will be made based on it. If the sensor in future phones improves, we may come back to the project.
For the near future, one way we may get this to work is to create a standalone pedometer with bluetooth enabled so that we can access it from the phone and provide neat analysis tools. This is outside our expertise, but it would be a nice challenge for device engineerings out there.