What is being described as "a near-future release" of Android by Android-Developers will bring with it a native app zoom feature such as the one used in the iPad to scale up apps that are meant for the physically smaller screens of smartphones. This likely means Android 3.2, and developers should thus disable screen compatibility mode when this OS is released. Currently, users can 'Stretch to fill screen,' but the new mode is called 'Zoom to fill screen.'
It will emulate apps in a 320x480 mode and then scales up to fill the screen. This improves the app's usability by retaining its smartphone look but zooming in to fill the screen. If developers' apps do not resize properly to large screens, it's likely the new feature will make them more appealing.
Android has faced a lack of tablet-native apps and has only been partly served by the stretch support for existing apps. It works for some titles where long lists or tiled views make sense but often falls apart for apps that were built for a smartphone size. Apple doesn't have the option of stretching without developers writing universal apps but has always had zoom from the start.