Updated to 2.1 this morning with no problems, from the regular 1.5 SenseUI. The phone seems snappier, Market is much nicer, and now my phone can run a bunch of new apps! Yay!
I was surprised to see there was no speech to text included, as I had loved this feature back when I had a custom 1.6 rom on my Dream. With no physical keyboard on the Magic, talking into the phone is much faster (for me) than dealing with the onscreen keyboard.
I was able to work around this in two steps. (If you don't know how to install apps from apk's, google it, it's not hard. Be sure to activate the keyboards from the Settings screen.)
Step 1. Install Voice Search with Keybaord apk. You can get it here:
MEGAUPLOAD - The leading online storage and file delivery service
You'll see that it's correctly installed if you can see a microphone icon on the google search widget. You can use your voice to search, but to do speech to text in other apps (e.g. texting, emailing, notes, etc) you also need step 2.
Step 2. Install a custom keyboard with the microphone key. I used this one (note: it's a zip file, so you'll have to unzip to get to the apk)
http://www.hallerud.se/htc_ime_jonasl_lowres_27.zip
This setup works well for me. If I want to type, I use the on-screen keyboard. If I want to talk, I just hit the microphone key on the keyboard.
I hope this helps others who wanted speech-to-text, if anyone has a better way to accomplish this, let us know