With latest update to 2011 xperia smartphones, there is a new feature called. It is called 'gesture inputs' and functions like swype. There is also an option to give a space between two gestures. It will be available for all languages of the international keyboard.
This is probably inspired from htc's trace, its own version of swype.Watch the video below to know more about gesture inputs! It will be available with the new android upgrade witch will release shortly to all the xperia smartphones.