Android : Android build system broken or Did I miss something?

Problem Screenshots

Bear with me. I did find out how to work around it. There seem to be several ways:

1. Uncheck "Create Activity" in the new Android App wizard. then later create main activity on your own.


2. Change minimum sdk version to 14, so we do not need appcompat.

But It feels like the build system wants to break down even before I start out.. What is this issue? Why do I need to put up with it? What can I learn more? Why does Android.com not be clear about some tricks and tips? Any Android.com developers please respond.

Mods, I am sorry about this rant-like post but I must say this is very very very very very annoying! :(

Tl;Dr Android Development is a mess!