What is meant by "Wi-Fi Hotspot" in Android 2.2? Android 2.2 has a new feature called "Wi-Fi Hotspot" which was not available in previous versions. What is the importance of this feature? What is meant by "Wi-Fi Hotspot"? Is there anywhere that I can find information about this?
Wi-Fi Hotspot allows you to share your phone's internet connection with other devices which have Wi-Fi adapters. For example, of you have a laptop with Wi-Fi and you want to connect to the net, you can enable Wi-Fi Hotspot on the phone then connect the laptop wirelessly to the phone.

There may be carrier restrictions or costs for doing this... like Sprint which requires you to activate the Wi-Fi option for your EVO's account which costs an additional $30/month.  Other carriers may assess charges by amount of data consumed or block the feature altogether.

Some users have rooted their phones to bypass the enablement restrictions, but that may still result in charges for bandwidth used.