Yes, I have seen that automatic updating feature in the Market app on my HTC Legend.
I've go the Sprint HTC Hero and the other day I was trying to update one of my apps, but it took longer than normal (about 30min insted of 1min). When I went back into the market, it was way different and I thought that my phone had been OTA updated to 2.2 but sadly it wasn't.
I downloaded my update OTA on 10-5 for my Vibrant. It sputterd at first (Swipe,Search and page changes) but after a restart it was fine. The G.P.S. works now but one of my apps video player stopped working. Other video apps work fine but my favorite, (Notepad), won't play videos anymore. The update also added a H.D.video shortcut into the app section. To access the video player before you had to start with the camera. I can't wait for froyo. They told me one month 2 months ago. I'm sure phone arena will report all the info first. I love you guys. Keep up the good work..................
Have 1.6 on MT3G. I am seeing the new layout on the Market. It shows auto update. Is this coming to all versions of Android?
I received the update to the market sometime last week on my Samsung Moment.