Though I love Android phones, typing on the touch screen can be a pain sometimes. Anyway, I found out about the A.I.Type with it's amazing text prediction. According to the website, AItype uses a unique technology which combines Artificial Intelligence and complex mathematical algorithms and promises to help you type faster and better. When I last checked it only offers English predictions but hopefully support for other languages will come out later as well.
This Android 2.3 (Gingerbread) based keyboard for Android 2.2 is totally free. I was reading some of the reviews on the Android Market site and most of them were quite positive.