A member of the AndroidForums.com has managed to create a custom recovery image for LG Ally. This means that other developers can try to cook up some custom ROM's for LG Ally, and perhaps even put Android 2.2 on it before LG gets a chance to do it themselves.
Usually, the custom ROM's can be even faster than the latest Android versions, so this is perhaps a bigger reason to be excited about than waiting to get the update from LG several months later.
Another big benefit that this custom recovery image brings is that you can do a full system backup. By using an app like Nandroid, you can take a snapshot of everything you have on your phone at some point, and in case something breaks, you can fully restore it later. Songs, text messages, apps, and settings get completely restored, like you've never even messed around with them since you've taken the snapshot. It's a perfect way to ensure your phone will always work properly, too.
LG Ally is not a top high end phone, but for a mid-range phone it could become quite powerful once custom ROM's get made for it, or at the very least, it gets updated to Android 2.2, as LG has promised.