“Apple has quietly included handwriting recognition for Chinese (Traditional and Simplified) into the latest iPhone Firmware 2.0 beta. When you select Chinese input, you are given the option to use handwriting recognition allowing you to draw characters on the screen with your finger. As you write the character, four possibilities appear on the right side of the screen,” Arnold Kim reports for Mac Rumors.
“There is no support for English at this time,” Kim reports.
Full article, with screenshots and link to more, here.