Google's dropped new code for Android Donut and it sounds too good to be true. People at XDA Developers are reporting it has system-wide multitouch, universal search, text-to-speech, automated backups, a new camera app, and somehow, supposedly better performance.
Also intriguing is CDMA support–as in the kind of network that Sprint runs–adding on to Sprint's Dan Hesse remark that Android is coming to Sprint this year and rumors that it'll be Hero. You can see a lot of the new Donut features in action here, like universal search, in this video from the Google I/O conference.
Folks at XDA are working on a build that'll run on the Dream (G1), though it works in the emulator right now. [XDA Developers, Images via XDA's cyanogen, Thanks Will!]