Well, this certainly feels like it came out of nowhere. But, in the first real update since their acquisition by Nuance, Swype Beta for Android has a major update and now ships with Dragon Dictate technology which replaces Google's own voice recognition.
The Verge have tested it and have said it actually works quite well, and doesn't make you speak slowly and deliberately to recognize your voice like other voice recognition software, but of course doesn't pick everything up perfectly. Languages supported include English, French, German, Italian, and Spanish with more languages set to arrive next year.
There is a problem with it, though. If you try to use a language that isn't currently supported, instead of defaulting to Android's built-in voice input, it will default itself to American English.
Other improvements include a honed advanced language modeling algorithm, a feature included in the last release to increase context awareness and improve prediction. Other changes include languages can be downloaded from the Keyboard preferences, rather than on installation, and the keyboard now follows the installer color scheme with an orange trace.