Awesome progress so far!
I have updated my github repo adding back in the fancy dark gradient background. I think this makes it look a little better and more fitting.
Couple of ideas that I've had (that I haven't had that much luck finding the solution too)
1. If i click the 'n' button while SoftKeys is launched call finish() and exit. Alternatively you could launch the default launcher... Best yet. If you double table the 'n' button use the default launcher other wise use a second hit of the 'n' button to exit.
2. Remove the settings and replace it with a dialog to select the launcher. Long press the home button to select a new default
The idea being that visually you are presented with a real copy of what is found on other devices.
A better set of icons would be nice too if anyone is up to the task. I am thinking something like what is found on the face of the Nexus One.