Currently I'm using
libgdx with a
third party backend. It's a very powerful framework but I mostly use it because I already have a lot of experience with libgdx. The live wallpaper support is a little messy. I'm only just now confident I have it under control but I'll soon find out how my users' devices respond when I release my first project using it in the next day or so (working on marketing graphics/video right now actually). There are some published wallpapers which use libgdx on Play.
If I were starting out from scratch I'd definitely give
Rajawali a try. It's from the same developer who created min3d and looks very promising especially because live wallpapers are specifically supported, unlike libgdx where support is just kind of hacked in. Rajawali has support for common formats (.obj, .md2, .3ds and .fbx) which I believe you could easily export from Blender. Blender itself has a completely bizarre UI that I could never get the hang of but I'm told it's wonderful once you get used to it. I use 3ds Max, which is not free. Since you're just starting out anyway you won't have a lot of the hang-ups of coming from an established UI paradigm and expecting things to be a certain way so I think Blender is certainly the way to go.
Ultimately the best solution is always to roll your own format and code an export script of some kind (which again I assume you can do from Blender) to get just what you want from 3d package to final program. This way not only do you get just the right 3d data in the format you want it, but also you may want to export camera paths or define entity properties for animation and interaction. But until then the common formats should suffice. The Rajawali site has some excellent tutorials and example code to get you started. At the very least you should be able to get some models up and and running without much trouble. Once you get comfortable with 3D you can start doing really interesting things with shaders for which thankfully Rajawali seems to have great support. Good luck.
Josh
https://market.android.com/developer?pub=gentlemandroidhttp://www.gentlemandroid.com/