MG Seigler at VentureBeat is reporting that according to an anonymous member of the Android team that Google killed multitouch support for the Android at Apple's request.

http://venturebeat.com/2009/02/09/apple-asked-google-not-to-use-multi-touch-in-android-and-google-complied/

The story has a number of links to related issues.

Adding multitouch to Android:
http://lukehutch.wordpress.com/2009/01/25/get-multi-touch-support-on-your-t-mobile-g1-today/

Intel and Android netbooks:
http://venturebeat.com/2009/01/30/source-intel-prepping-for-mass-roll-out-of-android-netbooks/

Apple vs Palm:
http://venturebeat.com/2009/01/23/palm-will-defend-its-ip-too-says-former-apple-spokesperson/