Better Android Apps just released Open Home – Cupcake Edition. New features include a soft keyboard and live folders. You can grab it now from the Android Market for $2.99. Open Home is a complete desktop replacement. You can find our round up of several desktop replacements here.
Word from the developer:
Our engineers managed to back port it and make it available to the current firmware. Since Open Home is based on the cupcake branch, you will get a tasted of some of the new features that are only available on the next update of Android.