It's good that people are trying to rethink they keyboard for a touch-screen age, because it's not really an interaction method that carries over very well from the typewriter age to touch screens, big or small. We have Swype that works via continuous touch, BlindType that anticipates where you imagine the keyboard to be and some more unusual designs like 8pen, a radial touch pad with circular gestures for each letter. Nobody has the answer just yet, though. I wonder what we'll eventually settle on. Whatever it is, I'm fairly sure it won't be a QWERTY keyboard forever.
Mokalus of Borg
PS - And it will probably work pretty well without looking.
PPS - Google liked BlindType so much, they bought it for Android.