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Whatever I'm sick of this android system update drama. I would have gotten the Verizon Nexus One just for the quick updates (hardware improvements would be a +).
I haven't read every response on all five pages that currently make up this topic, but I want to say that my navigation now works where it hadn't worked before as a result of updating to the 2.1 patch. Shortly after updating to 2.1, it would display a never ending "searching for gps" message at the bottom.
Now a GPS signal is found instantly...before it even finishes loading the map directions. Navigation is a key reason for me paying big bucks every month to have this phone and I'm glad to have it back.
Rooting isn't illegal. It breaks warranty but it is not illegal.
It just doesn't block the SPRrecovery method of obtaining root many people are using which was the concern of many people on this site. It doesn't really "allow" it but it doesn't prevent it either.