An XDA Developer has developed a pretty nice looking, simple stopwatch and timer application which could replace your physical stopwatch device if you choose to use this app instead. The Simple Stopwatch & Timer app features 3 modes - a stopwatch with lap timer, countdown timer and a repeating countdown timer.
There's also a nifty lap statistics function that shows you the fastest lap, slowest lap and the average speed. Pretty neat right? Did I mention that its FREE as well? Can't go wrong with free stuff for Android (at least most of the time). Head on over to the link below to grab it from the market:
Simple StopWatch & Timer App - Android Market