Now it does. Google just released an update for the Android 2.1 Nexus One that enables multi-touch functionality on the device.

Pinch to zoom is only one of many multi-touch finger gestures that are supported. The maps, photo gallery, and web browser all receive multi-touch with the latest OS update.

Now the iPhone is not the only multi-touch contender in the smartphone contest. Google has released a software update for the Nexus One Android 2.1 handset that activates all of the finger gesture goodness of multi-touch.

Google maps, photo gallery, and the web browser will all support multi-touch with the new software update. This includes pinching and zooming with all of the typical two-fingered gestures that will make the Nexus One interface that much more intuitive and smooth.

Yes, Android 2.0 has full support for multi-touch. All capacitive touch screens are capable of multi-touch, however this is dependent on software.

Industry observers have suggested Google did not include multi-touch gesture support in Android applications on several handsets to prevent running afoul of related Apple patents.

Apple has also trademarked the term Multi-Touch™ and defines it as "touchscreen interface" on their trademark list.