There are currently two concepts that relate to the term "Widgets" in the Android world. First, there are the basic, elementary elements (did I just say that?) These are your buttons, text fields, etc.
Second, the "AppWidget" was introduced in Android SDK 1.5. If you use Vista or Windows 7, and AppWidget is a lot like the "Gadget". An application that runs on your phone that gives you a quick and easy interface. Examples I've got installed on my phone would be tip calculator, calendar, live newsfeed, and "This day in history". Think of it as an app that is running that you don't necessarily have to "run" to interact with.
It looks like AWAD Chapter 7 deals with AppWidget. I'm looking forward to that. Need to learn the basic widgets first which is the meat of Chapter 6.