TMoNews has it on pretty good authority (that usually means you can take it to the bank) that Donut is on deck. Beginning at midnight (Oct 1st) select G1 owners with un-hacked devices will be getting Android 1.6 OTA! 24 hours later, if all goes well, myTouch owners will start to see the the notification. Of course, you all won’t get it at once. This thing will likely be drawn out over days or weeks, so just relax and enjoy the news.
Quick Search, better cam software, text-to-speech, gesture support, and a new Market are among the improvements.