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There were some reports of the android emulator having timeout issues with accessing local server on the same machine. See - https://blogs.oracle.com/shay/entry/developing_with_oracle_adf_mobile#comment-1353087788323
If you deploy the application to an actual android device does it work?
One more thing to keep in mind is that Android emulator is itself a network host, and localhost will likely loop back into itself, i.e. emulator. Please try to set up the WLS to listen on an actual IP address for your development machine, create your WS DC using this real IP address, and then try to deploy/run the app.
If you need to retrofit your app with an new IP address, please keep in mind there are several places you would need to manually fix up, including the connections.xml file.
In general, if the device emulator's browser cannot hit a web service, then the ADF Mobile app will also not be able to hit a web service.
The most reliable way is to treat the emulator like an actual device, then work out your application's connection accordingly.