This is about software and the user interface being useful on a device of the target size and purpose. Android's target is smartphones not things that resemble the offspring of a PDA and ultra-portable laptop and the UI simple doesn't scale to anything bigger than a phone. WinCE's target has always been embedded systems, which do actually resemble these little PC-like devices, especially in the core hardware.
And just for the record, Windows CE and Windows Mobile are not the same. WM is based on the CE core, but they are no more the same than WinXP and the first gen x86 based XBox are.