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What are the limits to how much the ETH blockchain can be pruned. Will ETH ever be practical on devices with limited resources such as a Raspberry Pi, Android or iOS wallet?

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Light clients are on the way for lower power embedded devices. I believe these light clients only get block headers initially, and further data as needed on-demand from full nodes on the Ethereum network. Here are 2 of the light clients that are work-in-progress I am aware of:

Official Ethdev Light Client

Ethcore's Parity

In regards to pruning the blockchain, it looks like that is coming in geth v1.5.

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