One of our guest lecturers for our Human Computer Interaction courses was Per Ola who created a piece of software for better text input on touchscreen mobile devices:

[youtube]http://www.youtube.com/watch?v=TOg91yfvZpo&feature=player_embedded[/youtube]

I think it is a very novel product and could be extended to the desktop also perhaps using an OLED touch-screen – as well as touch-screen surfaces! The problem is still the haptic feedback…