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Originally Posted by breakmyfootoff
Dont forget that your droid already has an SMS and Email notification built in. The little light at the top right corner blinks green for an email notification and Blue for an SMS notification  Animated widgets are still in the early phases and so far the only downloadable ones are just demos to kinda let you see how they will look. Do a search for "animated widget" in the marketplace and you'll find at least one example.
Edit: I saw 2 with that search, an animated horse widget just as an example, and an actual flip clock in early beta stages. Both are made by the same guy that makes Home++
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Yes, I've seen the demos but was looking to see if any are in production with a purpose which I think this just screams! I guess I'm hip to the LED and it's nice to to let you know to at least turn on the device then I'd like a glance to tell me more about what's happening that needs my attention.
FYI, Handcent SMS allows you to set the color and blink pattern etc. for the LED per contact which is handy. I'm not so sure the LED provides me with enough to know what is happening between getting an SMS, an gmail email and a work email. I'm living without but I did get a little used to extra information provided by dynamic icons so I thought I'd ask. My guess is this feature won't be too far off in the future.