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This video, posted in August 2006, shows some interesting UI work: http://www.youtube.com/watch?v=UcKqyn-gUbY. Some of this stuff seems to be included in the iPhone (I think - I don't own one). The presenter shows a full QWERTY keyboard on the multitouch screen but I don't believe that this will ever take off - tactile feedback is a key component of the keyboard interface.
Is there particular research or literature on this topic that you're reading?