My first thought on seeing this was, "I wonder what Garmin and Tom Tom think of this?"
From the blog post:
You don’t have to do anything to be routed around traffic; just start Navigation like you normally would, either from the Navigation app or from within Google Maps. Before today, Navigation would choose whichever route was fastest, without taking current traffic conditions into account. It would also generate additional alternate directions, such as the shortest route or one that uses highways instead of side roads. Starting today, our routing algorithms will also apply our knowledge of current and historical traffic to select the fastest route from those alternates. That means that Navigation will automatically guide you along the best route given the current traffic conditions.
Not only can you save time and fuel, you’re making traffic better for everyone else by avoiding traffic jams. Keep in mind that we can’t guarantee that Navigation will be able to find a faster way, but it will always try to get you where you’re going as fast as possible.
You can begin routing around traffic with Google Maps Navigation for Android in North America and Europe where both Navigation and real-time traffic data are available.
Official Google Blog: You’ve got better things to do than wait in traffic
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