Gingerbread
Looks like the Android 2.3 operating system (named Gingerbread) is being 'reduced', i.e taking functions off, for the Desire (non HD) so it can run on the limited phone memory. Shocking when I've a year to go on my 2 year contract! 
Is that why it's taking so long to roll out on the Desire?
It would be better if you had the option to delete the rubbish default apps like Facebook, twitter,news, stocks etc and/or be able to move/install all apps to SD card (without having to 'Root' it) rather than reducing Gingerbread.
I've rooted my Desire, and am running InsertCoin Rom which has hybrid Sense 2.1+3.0 and Android 2.3.3 with App2SD.
This means I have virtually unlimited storage for apps as I have a 1GB ext4 partition on which most apps are stored.
You need to be aware that when u install the CM7 bootloader (http://alpharev.nl/) you run the risk of completely bricking your phone. This is the only point you risk losing your phone completely.
Once rooted - you can switch between roms without any risk as u can always just flash a new rom from CM7. Backup your current rom first using the backup/restore in CM7. Titianium backup can backup your current rom, internal storage and apps in a simple backup+restore function.
Check out xda developers at http://www.xda-developers.com/ for custom roms+rooting for any android or iphone.
They are testing 2.3 in the next few weeks. It will take a few weeks more for the operators to test (those with a locked phone like myself) then we should have it! 
Good. I hope the keyboard is improved.
Not from what I've noticed.
I bought the Swiftkey app - the predictive text is superb as it learns from your texts etc. and the keyboard is fantastic!
Run a custom mod, pleanty to chose from and better than stock, CM7 or Oxygen (which i use). Leaves you with lots of space to play around with.