I think virtual keyboards take up too much space. I had a mockup of some sort of one-line keyboard that zoomed up like the Dock (forgot to finish the alphabet though):
On the iPhone it would zoom either based on where you touched or where your thumb hovered over it. The keyboard in the above example seems to just work with all the keys squashed down. I know the qwerty layout is internationally recognised but I'm not keen on it. I don't think people can more easily recite the key order of of a qwerty keyboard than an alphabetic layout but it would be trivial to pick a new ordering method.
It looks fast enough and is definitely something I'd like to see in iOS. They don't have to buy the company though. They can implement a single line keyboard by themselves.