I've had no problems playing with dynamic music on desktop OR on Android. Running 10 looping (through code, not the default looping for audio) audio clips only seems to slow down loading so I can preload all of the audio.
Most of the Android testing I've done has been through Crosswalk 10 on an Amazon Fire phone, not the fastest Android device by any means, and it handles the audio just fine.
Just keep messing around with it, there's no real reason it shouldn't work. At least, no reasons that are C2 or HTML5 audio-specific.