Well, it may not be everything promised in Cupcake, but Google has recently released Android 1.5 for the HTC G1 (and, presumably, for the HTC Magic and all future Android handsets).  Android 1.5 includes a number of things originally slated for Cupcake, including the highly awaited virtual keyboard!  It also includes an accelerometer to rotate the display from vertical to horizontal to make it easier to use the full-sized virtual QWERTY keyboard.  

In addition to the keyboard, the update includes new video recording options, faster web browsing, copy and paste support, stereo audio for Bluetooth users, and many other minor updates and changes.  No word yet on when this version of Android will be standard on shipped devices, but some of the features are listed as being essential to the HTC Magic.

Via Electronista