Good news for G1 users: T-Mobile Germany's says that the Cupcake updates will be released next month. They have stated in their G1 promotional page, heralding the new features which sadly don't include vanilla frosting.
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• Additional on-screen keyboard - you decide how you enter your messages
• Video recording and playback
• Pictures and video include one-click Picasa and YouTube uploads
• Automatic adjustment of the touchscreen when the G1 is held horizontal or vertical
• Support for Bluetooth stereo headsets
Yummy. [T-Mobile Germany via Talk Android]