The application for this in the classroom is immense. Sitting with a group on the mat doing reading and across the room you can hear the story another group is listening to is too loud. Simply drag the volume control and you can turn it down so you can hear the students you are with.
Android@home (codenamed project tungstein) will be a huge leap in education. From here you can have speakers throughout the school and control it from any tablet with administration rights.