It looks like Androids' Achilles Heel is finally being fixed. According to this report google is finally getting its act together and provide users with an option to install apps to the SDCARD. Till now you could only install apps to the ROM provided on the phone and not the SDCARD. The only way to get around this was to flash your device with a custom rom and/or rooting/modifying the kernel.
My guess is that this feature would be incorporated in the upcoming Android 2.2 release (codename froyo).
via : androidandme