The Google Docs Android app has been updated, adding long-overdue rich text editing, meaning you can now bold, italicize, underline and do a generally a lot more than you could previously. The editor is phone and tablet ready; this should significantly decrease the people using QuickOffice and other Android office suites to access their Google Docs. I know I'll be using it on my Transformer Prime, on which I am doing a review on soon.
Also added to the app was live collaborating and sharing, meaning you can now see other users edits to a document in real-time. This is a major Google Docs feature, so I for one am glad it has made its way to the app.
There are a few more things this app needs, however: while you can access your Docs offline (should you choose to make them offline), you currently cannot upload documents to the Google Docs service using the app.
The update is live in the Market, so go get it for your Android phone or tablet now!
Google also released a video for the update, embedded below.