Froyo is shaping up to be the biggest update since 1.5 aka cupcake. If this does come true coupled with Flash integration this may very well be the biggest update to Android since its introduction. Our staff member Extorian has uncovered some dialogue made by a Google employee that pretty much confirms this is coming.
Ever since the G1 was released ages ago, the biggest complaint about Android was the lack of app storage. Many users think low app storage will limit the installation and availability of good apps (the best ones are usually huge). For the longest you could nullify this weakness by rooting and gaining the ability to store your apps to your SD card. Rooting isn’t for everyone so this official method is probably the biggest upgrade to Android.