Larger Live Tile seen in 2011 concept slide
After some time, Swype begins to learn which words you use often, so you don't have to be so precise. In fact, as long as you're in the neighborhood of a specific letter, the word will come out correctly. Many people swear by Swype, while some swear at it.
The other bit o' good news for Windows Phone fans is that it seems likely that the Large Live Tile recently introduced in Windows 8.1, will be available on Windows Phone 8.1. Certainly Windows Phone users will think of something worthy to pin to that tile.
source: Reddit, WMPoweruser (1), (2)