I don't see that behaviour on either my ZTE Blade or my Motorola Xoom. On rotate it remains on the second activity.
There are other problems with that demo code. The initialisation is only done once for the main activity which is wrong and there are two invocations of Activity.LoadLayout which looks odd.
Yes, Erel pointed that out to me yesterday. I have fixed it in the full program. I just copied and pasted that part b4 i realised i had left the if end block in
and there are two invocations of Activity.LoadLayout which looks odd