Yes, I think that it would be best for Apple to have a better iPhone keyboard when it releases the next generation of the popular iPhone. The current keyboard on the iPhone does not allow people with bigger fingers to easily access buttons to send texts or type and therefore a bigger keyboard is needed.
The buttons are a little small and very close together. This makes for a lot of spelling errors, and sometimes the predictive text works faster than you can correct the wording in the text. Minor changes like spreading the buttons of the keyboard out a little more and making the buttons slightly larger would make the iPhone keyboard much more functional.
The buttons are a little too close together, which can cause you to type in the wrong word several times before completing a text message or Internet search. While the predictive text is helpful, a keyboard with larger buttons will make the phone much more functional and easier to use.
No, the iPhone doesn't need a better keyboard. Why not? Because few people use the iPhone for extending typing. Instead, people use it for short messages such as texts, tweets, and Google searches so the current format is just fine for that. It seems common knowledge that if you need a phone for lots of typing, then just buy a Blackberry.