This is not the case, at all! It does save to the SD card, I promise you that. Follow my method in the OP!
DISREGARD THAT POST!
Hi Trident,
I actually went to the trouble of flashing my Droid back to 2.0 (not 2.0.1):
Motorola Droid 2.0 .sbf leaked - Android Central Forums
then rooting 2.0 so that I could "watch" the update process. I can confirm that the 2.0.1 upgrade was downloaded to /cache/downloadfile.zip.
The confusion stems from the difference in how an automatic update was done (system downloads to /cache/ folder) vs. how the manual update was done (user placed download in /sdcard folder).
It's always possible that 2.1 will be applied differently. One issue I see is that the /cache partition is only about 90mb in size and some of that gets used by apps or the system. The 2.0.1 update was only about 10mb so it would fit fine but should 2.1 be 50mb or more, it might need to be saved to the sdcard where more space is available.
This all might be for nothing today anyways if BGR is correct :-(
Jay
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