I'd probably go that route, but I'll use my old Samsung, reset it to factory, or flash a new bare OS into it, root it, then titanium all the apps out of it. (Use the root to DELETE all the apps, even the google apps). Just leave enough so it can connect via wifi.
LOL wtf? and you call that cold storage?
Okaaaay, maybe I missed a small detail ... if the android phone is always going to be offline, how will it submit or broadcast the transaction? Not unless there is something like Armory for Android.