Hurrah! We have finally got the most awaited YouTube feature on Android. You will now be able to choose the video streaming quality instead of just choosing between HQ or HD. With YouTube version 5.7 for Android you can choose to stream videos at 144p, 240p, 360p, or 720p. Strangely 1080p is still missing, but you do have an "Auto" option which might let you play in 1080p based on you internet connection speed.
The streaming quality can be set from the settings menu on the top right of the video you are watching. The update will be rolled out in stages, so it might take some time to reach your phone.