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It's too bad the Android keystore doesn't support secp256k1 so it can't be used for Bitcoin wallets. A hardware wallet with dedicated display and input is much better but the keystore could at least protect the seed and require user presence for use. Curve25519 would be nice too.
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I think it should be straightforward to add secp256k1 curve support to the keymaster implementation. A custom implementation would be better if it had a trusted display and input though, so a BIP39 passphrase could be entered without exposing it to the OS + secure confirmations.
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Also recording the recovery seed phrase without exposing it to the OS and the same for performing recovery. A Trezor Model T provides all that but as a separate device which is much less convenient than it would be with the same kind of thing inside someone's personal phone.
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