According to the Android blog, Android 2.1 is a minor platform release deployable to Android-powered handsets starting in January 2010 and includes new API changes and bug fixes. The upgraded API include features such as live wallpaper, new signal strength view. It also has WebKit with new storage methods, WebSettings methods to manage settings for app cache, web storage, and zooming based on screen density, and WebChrome Client methods for handling video, browsing history, custom Views, app cache limits, and more.
The other features are Android library and system image, as well as a set of emulator skins, sample applications and many more.