Yes, that is still Android 2.1, which is positively ancient by now in terms of Android software development. Luckily, ZTE seems to have (finally) understood that, so it's going to issue an update for all Blade variants (that would include the San Francisco, of course). Perhaps unfortunately, the update won't be to Android 2.3 Gingerbread, the latest version of the OS, but to Android 2.2 Froyo. Now the update is obviously a good thing for San Fran lovers and owners, however even Froyo is now about one year old. So in the future ZTE may want to assign more engineers to Android updates. Because the Blade/San Fran is so cheap, there was next to no backlash until now surrounding the ancient OS version it runs, but as ZTE looks to make inroads into higher echelons of the market, it's going to have to pay more attention to software updates.
Anyway, the Android 2.2 Froyo update for the ZTE Blade and Orange San Francisco will become available during the last week of this month, according to Android-France. Mark your calendars, reset your watches, etc.
source: Unwired View