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Google has been working hard on the Android SDK since the initiative was announced. Today they unleashed a new version for developers worldwide. The new SDK incorporates several features to make development easier, a new interface, improved codec support, a geocoder, and other goodies. All of these are intended to make Android a more viable platform for mobiles going forward, although some developers have taken issue with Google's lack of updates to the telephony package within Android.
It is still a relatively new platform, and we haven't seen it prove itself anywhere just yet. But we might see that soon with ARM preparing to demo Android phones later this year.