I was happy to be able to speak Google searches as of Android 1.6. 

This evening I also discovered Handcent SMS is able to use the same feature / function to allow me to dictate TXT messages into the message field.....and i can then edit them or just send them if they are perfect. Two out of 3 were perfect. in the one that was wrong, I had to pronounce "Stephen Colbert" as "stephen coal-burt" for it to correctly spell his name (usually pronounced "coal-bare").