2.1 has Voice to Text built in! Works anywhere the virtual keyboard works.
I just discovered a "Voice Input" check box under Settings > Language & Keyboard > Android Keyboard > Voice Input
When you check the box it places a little microphone icon on the virtual keyboard when it comes up right next to the space bar.
You can press it and just speak. When you stop speaking it analyzes what you said and transcribes it into text!
It's quite amazing. You have to talk a bit slower and speak clearly so it is accurate, but it's a great free addition to Android 2.1 .
Update:
Unfortunately voice input for the Voice to Text feature does not work with Bluetooth headset. This is quite a shame because in a noise environment like a car on the freeway, it would really help to have the mic at my face.
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