Whoa! You guys are 100% correct...
My DROID H/S used to rotate as well, and now - NOT!
And like others, my phone would rotate based on screen rotation and stopped ever since I first put it in the car dock and multi-media station.
I think this is a bug than them actually preventing the orientation...why would the option to automatically change orientation be given in the display settings?
Any updates pushed out by Verizon OR Google must be approved by the end user. They cannot just push stuff to your phone without your knowledge. Until I find proof that the home screen did rotate when someone received the phone I am going to stick to my argument that stock Android (1.1, 1.5, 1.6, 2.0) builds DO NOT have the functionality to allow the home screen to rotate using the STOCK launcher. Once I see proof of this occurring in the stock Launcher then I will believe it, but I have gone through 2 Android phones and been with the dev community a while and the home screen has never auto-rotated based on orientation.
my home screen DID rotate until i used a new wallpaper..that is when it stopped...i am assuming that if i went back to the stock screen..it would once again rotate... for now, i prefer my shelves full of red skulls wallpaper over having it rotate....
The Droid obviously is able to rotate in the home screen....when in the car dock and MMS...so they purposefully prevented this when NOT in the dock?....that is strange indeed.