The Froyo update will enable me to use several apps I am looking forward to (such as the Sony eReader - so I can share the account with my kids.) The thing is, to many people the update is highly anticipated. If there are those who are happy with 1.6, then that is fine, but there are many who disagree and are hopeful for the new udpate.
This will update also help Entourage sell more EE and PE's to new customers. The Android 1.6 version is a stigma when compared to newer tablets. The fact is, a company cannot always release new models every year since they really need to recoup R&D and initial production costs. Updating the OS is the cheapest and easiest way for them to become more competitive in the market.
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