In Android 2.1 the browser doesn't support the contentEditable attribute for elements, meaning that it's not possible to use WYSIWYG editors in web pages because the virtual keyboard won't popup to write your texts (lots of other operations can be done by manipulating the DOM, but also providing a virtual keyboard might be too much).
One important problem with that status is that although contentEditable doesn't work, isContentEditable does return the "correct" value, and it states that such elements are editable although they aren't so it can't be used to find out if the browser doesn't support contentEditable and when they release a new version enable it automatically.
So I filed a ticket about this some weeks ago, and yesterday I got a notification stating that Android 2.2 a.k.a. FroYo does support contentEditable!
Those are good news, really good news. If it's true, you can expect to see support for your Android phone shortly in editors like CKEditor, TinyMCE, YahooUI,... and apps like GMail, Google Docs....
Anyway, I'm still unsure about that statement, currently I'm using FRF83, that's not the final build because now I'm waiting for the OTA as they said that we should get it during this week, but I've been doing quick tests with the previous builds and I didn't notice any change in the behavior.
You can test it right below. If it works, clicking after the "type here" paragraph should put the caret there and enable the keyboard, and clicking the link should open the Google home page, let me know if it works in your phone.