IMHO this is the main objective. They even mention in the RFC the case of running Android native code.

JVM? I suppose android apps dont run on jvm, it has dex/art vm, isnt' it?

Sure, Android apps are not interpreted by a traditional JVM, but they still rely on a Java-like runtime environment (libraries, etc.).

Kind of, they only work if they fit into Android Java's view of the world, meaning a Java 8 subset with cherry picked features from OpenJDK.

Dalvik is a jvm, just not fully compatible with openjdk. Android is slowly migrating towards toward openjdk, I expect Java 17 to put them enough to shame to have to react

Most of the Android ecosystem is on Kotlin at this point. So Java language changes don't really matter for Android. Jvm changes matter even less because Google implements their own runtime.