"Froyo" — a/k/a the beta version of Android 2.2 — was unveiled at Google I/O in Frisco, and Engadget got to play with it in detail. Among the high points: Flash 10.1 is enabled (although at the cost of a performance and battery-life hit), as is tethering and Wi-Fi hotspot functionality. The camera, Gmail, and voice-recognition apps also sported improvements, as did standard performance benchmarking tests.
On the minus side, the YouTube widget's "HD" button didn't seem to do much of anything on the test phone (a Nexus One), and Android apps and interfaces still don't have a unified look and feel. But the concensus is that Froyo is an indication that Android is moving in the right direction.