One of the good things about the Android phones is that because it's an open platform it means that there will be plenty of hacking/optimizing/etc. going on.

I just upgraded to the HoFo Community ROM and it is soooo much better than the ROM image that comes with the phone.

It has things like Multi-touch, Wifi tethering, access to paid apps, and much improved performance.

If you'd like to make the move, instructions are here:

http://seethisnowreadthis.com/2009/07/07/the-rogers-htc-magic-hofo-community-rom/