LOCAL_ARM_MODE := arm should be removed for armv7a and above because it is forcing the use of the ARM instruction set over thumb,but armv7a has thumb2 with variable length instructions and thumb code is smaller and fits better in the CPU cache.(It should probably be removed for armv6 as well but I am not sure.)
LOCAL_ARM_NEON := true should be added for a separate build path(http://buildbot.libretro.com/nightly/android/latest/armeabi-v7a-neon/) because most armv7 processors have neon and it can speed things up a lot.
LOCAL_CFLAGS += -munaligned-access should be added since armv7+ must allow unaligned access (and all 8 and 16 emulators will be using unaligned access)