According to TechCrunch, who has several sources close to Google say that they are "laser focused" on improving the User Interface for their next version of Android.
When Google launched FroYo, the majority of the added features were under the hood, but it has a few changes to the UI too. The Android team wants manufactures to stop putting covers over the versions, like Sense, MotoBlur, etc. It is unlikely that manufacturers will stop putting the skins over Google's software, but Google wants to make the skin as useless as possible.
If they want to do that, they are defiantly going to need to improve the virtual keyboard, and Andy Rubin already said that it needs some improvements.
