The DROID in it’s self is a great phone but rooting (hacking) it will make it that much better. Once you have rooted your DROID, here are a whole bunch of things and reasons as to why you should root it and what you can do after rooting the DROID.
Overclocking:
An out-of-the-box DROID is stuck at only 384MHz to save battery life. With a rooted DROID, you will be able to overclock your device up to the full 512MHz capacity of it’s processors.
Wireless Tethering:
With a rooted Android device, you can now use wireless tethering through either BlueTooth or WIFI. This allows you to wireless connect your laptop to your DROID via adhoc-hoc wifi and surf the net on your laptop through the DROID 3G network.
How to do it:
How do I install the program?
For Android 1.5 (cupcake) users you can either download it directly on your phone or look it up in the Market. For Android 1.1 users make sure you download version 0.97.1 from here.
More more information, go HERE.
Google Maps:
With a Rooted DROID, you can use Google Maps navigation instead of the included DROID navigation system.
How to do it (by Theomajigga):
REQS:
1. Dream or Sapphire/Magic/Mt3G
2. 1.6 Rom as a minimum
3. Custom recovery either Amon’s or Cyanogen’s
4. A brain
5. The download at the end of the post
STEPS:
1. Download this for most Donut builds (Cyanogen based). (also attached now 
)
2. Place in the root of your sdcard
3. Reboot in recovery
3. Select chose update.zip (or rename the downloaded file to update.zip)
4. Select update_navigation.zip
5. Reboot
Extended steps:
If “Navigate” doesn’t show up the first time:
1. Go to settings
2. Click on applications
3. Click on Manage applications
4. scroll to apps
5. click on Maps
6. Clear data
OR
1. Install Google Voice
2. Uninstall Google Voice
3. Reinstall Google Voice
An Alternative (better) Keyboard:
The default DROID keyboard apparently has a lot of problems with being too small etc. Once you root your device using the CyanogenMOD, you will immediately be able to use the much better HTC keyboard. The alternative keyboard is apparently much easier to press and is harder to ‘miss’ the key you are trying to press as it is slightly larger. Also, their keyboard leaves out the ALT button and instead uses longer presses to enter the alternative keys such as numbers and punctuation. Plus it’s a lot more snappy and responsive than the default one.
How to do it:
Navigate to Settings > Locale & Text > then turning “Touch Input” on and adjusting its spell/suggest/feedback settings.
Multi-Touch Browsing:
Without this hack, zooming in/out in the browser involves pressing once, zooming in or out with the (+) or (-) buttons and then re-adjusting the screen to where you want it. Once you have rooted it, you can get multi-touch pinching as on the iPhone on your DROID’s screen.
It may not be as responsive as the iPhone’s multi-touch but it sure is better than the default.
How to get multi-touch (complicated to install).
Get rid of applications you don’t like/use:
For example, the email.app. Download MobileTerminal from the AppStore and type in the following codes:
su
mount -o remount,rw -t yaffs2 /dev/block/mtdblock3 /system
cd /system/app
mv Email.apk Email.bak
Ad Blocking:
Download: HERE
download the attached hosts file
unzip
modify as desired
copy it to the sd cardthen in your favorite droid terminal:
su
mount -o remount,rw -t yaffs2 /dev/block/mtdblock3 /system
cd /system/etc
mv hosts hosts.bak
cat /sdcard/hosts > hosts
mount -o remount,ro -t yaffs2 /dev/block/mtdblock3 /system
sync
reboot
