HTC has reason to believe that the cupcake update (or at least most of it) will likely be making it to the T-Mobile G1 as a legitimate over-the-air update. Needless to say HTC is not a part of this update so they are not in charge of deciding what makes it in the update and what does not.
HTC however believes that it is only a matter of time before T-Mobile makes this update a reality for everyone. As of right now HTC is still out of the loop on when and how things will proceed. It’s all up to Google and T-Mobile. Google has been quick to send out patches and updates to fix bugs, but we have yes to see any major changes since Android released.
Right now it appears that T-Mobile, Google and HTC are not making comments on any rumors or speculation just yet. With the on-screen keyboard is such high demand, Google would be wise to deliver this update asap.