I was looking into implementing an Inertial Navigation System for an Android phone, which I realise is hard given the accelerometer accuracy, and constant fluctuation of rea
I'm not sure how great your offset is, because you forgot to include units. ("Around 10 on each axis" doesn't say much. :P) That said, it's still likely due to inaccuracy in the hardware.
The accelerometer is fine for things like determining the phone's orientation relative to gravity, or detecting gestures (shaking or bumping the phone, etc.)
However, trying to do dead reckoning using the accelerometer is going to subject you to a lot of compound error. The accelerometer would need to be insanely accurate otherwise, and this isn't a common use case, so I doubt hardware manufacturers are optimizing for it.