It sounds like Donut is not ready for your G1 just yet. Cynaogen posted a twitter saying:
Need to wait for another donut code drop from Google.. The performance of the current code is pretty poor.
So it sounds like we’ll just have to wait for the code to get cleaned up a little before its ready for the masses. We’ll just have to settle with little donut crumbs sprinkling into our latest Cyanogen build.
Keep up the awesome work Cyanogen. We’re ready for testing as soon as you have something useable.
UPDATE Tweet from Cyanogen:
that’s the donut as we have it today in the open-source repository. i’m sure google’s tree is way ahead of it.