Yes, exactly, I came here to ask exactly this if we're allowed to stretch the viewport or something since... you know 160 x 144 on PC for example could be super tiny if you HD or superHD resolution or whatever it's called.
Best way to do this is to render everything to a 160x144 texture, then draw that 160x144 texture covering the whole window. That way you don't get any horrible subpixel crap.
Oh yeah, as for format, if you can get it working on the web on a not-phone it should be fine, if you only release an apk you are seriously limiting your audience.