Late yesterday Google released an update to its Gmail Android application for smartphones. The update brings with it several bug fixes, improvements, and feature additions.

The biggest improvements/changes include enhanced priority inbox support, an improved compose email feature, and in-line rely responses. With priority inbox support, users can now see importance markers in the main message list and rank messages right from their device. That is if you actually use priority inbox.

The new compose feature will allows users to switch between reply, reply all, and forward while in the compose screen as well as set the outgoing account on the fly if they have more than one Gmail account on their devices. In-line message replies work similarly to how they work in the traditional Gmail interface.

The new Gmail application, which carries the designation of version 2.3.2, is available in the Android Market now. So far the update seems to be working fine on our test HTC Incredible. We’ll let you know if something breaks.

Good news for those of you currently using something other than an iPhone and in particular users of Android powered devices. Google has, in their infinite benevolence, updated the Gmail application for Android and has given it some new features and fixed a few bugs.

Some of these new and improved goodies include message actions sticking to the top of the screen while scrolling, view previous messages more easily like with the desktop client, performance boost for most features and limited support for Priority Inbox. Although, as someone who really didn’t take to Priority Inbox when it came to the desktop Gmail app, I’m not that excited about that particular part of the update.

Still, it’s nice to see that Google seems to be on top of it when it comes to improving the user experience on Android powered devices. With the recent (or pending for some of you) update to Android 2.2 (aka Froyo), Google seems to be on a path of improvement for its software. As an Android smartphone user, I couldn’t be happier about it.

The update is in the Android Market and available for all those running Android 2.2.