There are a lot of interesting use cases for sub 1m accuracy and/or
indoor positioning on a mobile phone – hence I am following your ideas
with interest.

Your proposal as I understand it:
If the communication API (at either the server or the client side)
gives you access to signal strength and packet delay information, you
may be able to get some idea of distance (but not direction?).  This
estimate would become less reliable as more walls and furniture get in
the path of the signal.

Communicating with two Wi-Fi transmitters (if this is possible on the
client side?) with known positions and coverage areas, would give you
two or more overlapping regions where the handset might currently be
located.

By fixing your results along known walking routes and integrating path
data (from the accelerometer) you might be able to guestimate a user’s
current position.

With all these uncertainties, I think claims of sub 1m accuracy are
overly optimistic (but not unachievable), although such a system could
have other benefits.

To the original question: the Android Wi-Fi API has not yet been
released, so I can’t comment on how well your proposal might work on a
real device.

Also, I am also investigating using accelerometers for estimating
position *inaccuracy* for my Snowball platform, which has
significantly lower accuracy requirements:
http://blog.zedray.com/snowball/

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