With the success that was well anticipated but still fell short in comparison to Apple’s iPhone, G1 is trying everything to make it an even game. While G1 has an excellent keyboard, they are going for more with a touchscreen keyboard which will have “a dictionary of suggestions and a suggestion algorithm”

Here are some of the details from their site
Input method framework (IMF)

This feature will enable support for input methods other than physical keyboards, for example soft keyboards. IMF will also enable application developers to provide IME (see below) applications based on the framework.

Input method engines (IME)

IME will support soft keyboards, a dictionary of suggestions, and a suggestion algorithm. The Android platform may contain few reference IMEs, and developers can provide IME applications through the Android Market.

The proposed features are to come at Q1, 2009. Good luck at that.