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"Google also pushed for facial recognition, a head-turning feature that taps the Google cloud to bring up similar images when you take someone’s photo with the phone’s built-in camera."
Perhaps they are talking about the phone recognizing the fact that it is being held up to your face, disabling the touchscreen to avoid accidental button pushes. Maybe they are talking about "real" facial recognition, but I can't seem to find any more info about it.
Edit: A lot of the info I've found searching seems to point towards "real" facial recognition, which will be used for auto tagging photos and linking to someone's facebook page from a photo. Seems cool, I can't wait to see it implemented!
Can you point to a place listing this as a feature with Droid? I did see something similar to this, but it was tied in with the Sony X10 phone. You would tag a person in the picture, and from there is would link to your contacts, so it would be able to recognize that person in any picture on your phone, and if you pressed on a picture of that person it would dial them. A "feature" that I think is high in "gee whizz" factor and low in actually practicality. But again, i saw it for the X10 which is an Android based phone, but not the Droid.