Is there any API or framework or anything that I can use in my Android app to detect other Android devices nearby that also have my app running on them?
Slandau,
The Bump App API is available and has a somewhat similar feature implemented. When two phones "bump" one another it uses their current location to know which two phones bumped. So, their proximity is calculated to some degree. You should look into their API and see if you can do something similar. I don't think there is just a standard API for this as the privacy/security risks should be obvious.
Look at what Google Latitude does:
http://code.google.com/apis/latitude/
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