Owners of the (hard to find) Droid Incredible are in for a real treat. PocketNow reports on speculation that an HTC/Verizon software update for the smartphone will bring a bundle of cool new features. 720P HD video recording and support for a Mobile Hotspot app are expected.
The Incredible's 8 MP camera is certainly capable of recording 720p HD. The Mobile Hotspot feature is also very possible, as it will be coming in Android 2.2. Expect Big Red to tack on an extra charge for the service; $20/month for 2 GB of data with tethering.
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These rumors have yet to be independently confirmed. Take them with a grain of salt until we hear some confirmation or see a convincing leak.