Is there an equivalent to iOS's Keychain on Android?
My understanding of the Preferences API is that it is not encrypted. For my application it doesn't matter whether these credentials are persisted across devices (i.e. a different use-case to iPhone-like Keychain in Android?)
I also looked at the KeyStore API but it seems to leave the actual storage of user credentials up to the application developer.
Short answer, there isn't one. But you can expect the filesystem to be secure.
Each app operates under a different user, and the filesystem used to store app data is secured by normal UNIX user permissions. So each app's file access is sandboxed by default. The filesystem also may be encrypted.
This page from the developer's site explains it better: http://developer.android.com/guide/topics/security/security.html