I recommend that developers not install this new SDK right away. The reason is that programs you build with it may not be compatible with phones running the Android 1.0 system image, even if you don't use any of the new features.
Once you are sure that all your users have the 1.1 system image, then follow these steps:
By changing the minSdkVersion number you will prevent your program from accidentally being installed on an old image where it may not work. It's better that it just not install than run the risk of failing in unexpected ways.
The API changes are minor and it's very unlikely you will need them. Even Google suggests:
If you are sure your application is not using Android 1.1 APIs and has no need to use them, you might find it easier to keep working in the Android 1.0 SDK, rather than migrating to the Android 1.1 SDK and having to do additional testing.
Resources: