Why wouldn't it be able to? This isn't apple.
We just got an official Froyo release, with all of the sources, so people are currently busy getting stuff working. Might be best to wait a few days.
If you don't want to wait, feel free to do research yourself:
http://forum.xda-developers.com/forumdisplay.php?f=716
Topics of interest:
Clockwork Mod version 3.0.whatever -- This is a recovery menu. Also roots your phone if it isn't rooted yet
Kernel Genocide EB13 -- Custom kernel, it's overclocked for increased performance, and also undervolted for increased battery life. Can probably use SetCPU on top of it to get rid of the overclock if you want to save even more battery life
How to Update to Official EB13 (this was in page 2) -- Instructions to use ODIN to put your phone onto EB13.
Basically, what you want to do: ODIN to EB13, Install clockwork (also gives root), and then, well, for now you can just install the kernel.
What you will be able to do in a few days is get to try out different custom roms, until you find one that you like. Since this Android update is really recent, I don't think any of the custom roms have been updated yet.
Viper, Nebula, Bonsai, whatever, all that shit that you see on that forum, are all the current popular custom roms. I don't really like them, because they're kinda just modifications of the base system with crap sprinkled on top. A ton of them include themes which I find ugly and dislike. The one main thing is that they all remove the sprint bloatware, so running one of them will be an improvement over running the stock rom.
Now, besides those, there are two different projects you'll want to keep an eye on: MiUi and CyanogenMod. Both of those (At least Cyanogen, not 100% sure about MiUI but I'm pretty sure it's the same case) are built directly from the AOSP. (Android Open Source Project) What this means, is that they're based upon just plain old vanilla android. The problem with these is that it takes a lot of work having to modify it so that it works with different hardware, they're basically doing what Samsung, HTC, etc, do to their phones, without really all of the knowledge that those companies had. Why is this good? Well, since it's built directly from source, they're easy to modify to do, well, a ton of cool and different things. Kind of things that you can't really do by just modifying the already modified stock rom that companies supply. (I'm not 100% sure if this is exactly how it works, I'm no phone dev, but from my limited (limited just towards cellphones, really) understanding, it is)
Both Cyanogen and MiUi are pretty buggy for the epic right now, but they're being worked on. The biggest thing holding those projects back was the lack of source for froyo, which was just released earlier this week, so expect a ton of cool stuff coming soon.
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