Rumored: iPhone Firmware 2.0 to Recognize Handwriting

It appears that Apple is thinking ahead following complaints on iPhone's touch keyboard usability. Is this just another rumor? According to this screenshot taken by a Chinese site it could be true. When is English/Any Language coming?

I have one a question though, or actually more than one. How are we to write? Which finger can be best used for such a writing endeavor? Is there a stylus coming to iPhone? Where is it going to fit? Is this a picture a fake after all? Will Apple release an official story? Is this new "technology" going to be based on Inkwell, the handwriting tool in Mac OS X?