well yes and no...
i use blender for all of my 3d stuff.
but and this is an extremely important but.
if you design your level out of one object you have very little play with it..
like trees for example.
each tree will cost you polys and memory but if you create several trees as seperated objects and then instance them around your map then you will save a lot of memory keeping in mind that if you gonna develop for mobile devices you have to think of all CPU/MEMORY/FPS etc mobile devices are much less powerful then PC and even if you build for PC you want your game to work good .
so first of instancing objects is the way to go with AppGameKit .
what i would do is maybe.
create one object as the main LandScape maybe more then one so AppGameKit can hide everything it dosent sees so you can play with SetObjectVisible set to 0 if you are not near that object so AppGameKit wont draw it.
A few or more objects for buildings (example) and instance them around the map where they belong
some trees and flowers etc...
now i sometimes use blender origin to place objects. so if
you can build a full map with blender , placing every object at its place then exporting your objects as induvidual objects they will save the point of origin or anchor so once loaded into agk everything will fit right in place you can export "Selected only" then load them as induvidual position everything on the same location , scale everything with the same scale , and rotate everything with the same rotation and walla you get exactly what you get in blender only in agk.
what kind of game are you planning maybe i can help you think it trough.
hope this helped.
haliop.