I have made a few apps for android in HTML and JavaScript and when I convert it to APK file, put it on my mobile phone it actually installs the real app. It happens with an app made in Java when you extract it too... According to the answers of this question What is inside an Android APK file it seems to me like it actually unzips the project. My questions are:
I'm looking forward to your answers :)
An APK is a zip file that contains encoded manifest (xml), code binary (dex), images (png, gif), layout (xml) resources, and a few other misc things. And yes, you can produce the package by hand but it is far easier to use the available development tool to do it.