When I turned on my Nexus One this morning, I had a happy message on my screen - the "System Update Available" notification. It took all of about five seconds to download over my home's WiFi connection, and then rebooted to install.
I had seen on Gizmodo (or was it Engadget?) that the update was rolling out, but I hadn't read what it included. Well, one thing it definitely includes is a more business-oriented Exchange security policy enforcement. There was a new message in my status-message tray that said, "Security Settings Update", next to the email icon. Tapping that brings up the screen (shown in two shots below, since it scrolls some). The long and short of it is, in order to use your phone with an Exchange account with a version of Microsoft Exchange configured with security policies, you have "activate device administrator". This allows remote wipe, password policy enforcement, monitoring failed login attempts, and remote force lock.
The small text at the bottom of the second screen shot says, "Enables server-specified security settings". So, this update appears to be aimed squarely at the enterprise market - now corporate IT managers will be able to enforce corporate security policies for their drones' Android mobiles. Oops, did I say drones? I meant, happy, productive workers!