One of the more under-the-radar features of Cupcake is the ability to add Live Folders to the home screen. Dieter got a look at it with the HTC Magic and thought it was neat-o and after seeing the above video, we're pretty excited for it too.

As you can see, the video shows what a "Live Folder" is to Android. A Live Folder is basically a created folder that is automatically updated. In the video, it showcases a digg Live Folder--you have access to the top stories on digg right from your home screen via the Live Folder. We can definitely see potential for this in rss feeds, news feeds, twitter, etc. The ability to have an always on folder could be groundbreaking.

Anyone excited to use Live Folders in Android? We'll ask, how about more widgets while you're at it Google!

[better android]