This doesn't seem to be a bug that we can do anything about, since the Install dialog is provided by the system, and is out of our control. (after all, it appears before the app is even installed)
Does the appearance of the text look different when installing other apps?

Is it possible that this issue is related to Screen Compatibility Mode? From the screenshot, I can also observe an icon with outward-pointing arrows in the system bar.

http://developer.android.com/guide/practices/screen-compat-mode.html

The installation dialog box reads the Manifest & associated files. So, the source of problem could still be under our control. I think a <supports-screens> tag in our Manifest should do the trick.