I just saw the new Moto Milestone2 will be released with built-in MiFi: Motorola adds Defy, Milestone 2 to European portfolio | Android Atlas - CNET Blogs ...from that quote, it sounds like OS2.2 will have that feature included as standard for all devices? I was looking on the Android Market for a mifi/hotspot type app, but couldn't find one (?!). But I guess if it's included with 2.2, I'll just upgrade my Milestone's OS from 2.1->2.2 and I'll get it included? ...oh, and what about theathering? Is that easily done in Android? (I haven't looked into that yet at all...)
Mifi / WiFi teather should be on 2.2. But it won't surprise me if carriers will disable it, of use their own version of it for 2.2. PdaNet works very well and is easy to use. It uses wired or bluetooth to connect though. PdaNet with SMS Agent - Android app on AppBrain
I think that the rooted/ROM'd phones with 2.2 have the capability to act as a wireless tethering spot already. I haven't tried it yet. Haven't had a need to.