The answer is yes, its a really really really good choice. I recently had a chance to play with it when making some slick work on Android and its really well built. Performance on Android is going to be just about as good as it gets for Android (though the hardware varies alot anyway, so be prepared).
Its got a nice simple framework and a lot of features.
Nice, ill make sure to make some tests.
From the looks of it now it will be a 2D Top-Down Shooter game, but im guessing that libgdx will tackle this just fine.