My wife has had two Android models recently (the Samsung Epic 4G--a Galaxy phone--and now has the Nexus S). She has "accidently" downloaded viruses from the Android app store on each (we thought it might be the phones at first, but after returning each twice, we learned it was the apps). With her Galaxy phone, she even had her Gmail account hacked by downloading an app!
I don't think it's FUD to say there are viruses on the Android store. If anecdotal evidence isn't enough, there are studies available online too.
Fair enough. I kind of thought that it was an actual problem but didn't want to look stupid repeating something that a relatively rare phenomenon and make my self look like a brainless 'fanboy'. (Gawd, I really hate that term.)