Samsung is LG's long time rival. Whenever Samsung is creating a new type of product or entering a different market, LG is always right behind them. This time they are pulling it off once again. Since Samsung announced that it's bringing Froyo update to its Galaxy S, LG is wasting no time and they are announcing that their latest smartphone, LG Ally, will be updated to Android 2.2 Froyo, as well. LG isn't willing to commit to to a date, though, so don't be too surprised if they update it after the next version of Android, Gingerbread, is already announced by Google.
Becoming the smartphone brand with the slowest update process, is the last thing LG should want to do. They are already among the last of the big phone manufacturers that have entered the high-end smartphone market, which is also the most profitable one, and the ones that attracts the most early adopters and tech evangelizers. If they want to remain truly competitive they need to step up their game and update their phones even faster than their competition. If needed be, just use stock Android, and cut the extra development time and costs.