I could imagine that if the new Android 2.0 comes are released to the market with these full capabilities that the entire in-car navigation market will be shaken up. Or at the very least, prices will have to come down significantly. Looks like some market consolidation is in the near future for many of these companies.
I dunno... does the Google app cache the whole route and a reasonable surrounding distance and then rely on the GPS for the navigation?
Unless it does, there's still an enormous scope for the in-car navigation market as driving is one of the scenarios in which you are likely to lose your mobile signal or see it weakened enough to hurt a fully online navigation application.
According to CNET they do cache it:
"They cache the route selection after you input a destination, so it's stored locally and you won't lose the directions if you lose the connection. If you want to deviate from the route without a connection, you're sort of screwed, but that's not any different from other cell phone navigation apps, as opposed to portable GPS devices with more storage."
"as opposed to portable GPS devices with more storage."
The droid is rumored to come with a 16gb SD card, which can be replaced with a 32GB card. Pretty sure thats as much, if not more than any standalone GPS device.