The word is Motorola has finally pulled out their finger and is working on some serious hardware although and real information about this is somewhat scarce.
Apparently Motorola may be working on a mobile phone that will have a 5 megapixel Kodak branded camera, Xenon flash, TV out, a large touchscreen, and if the tip off is correct possibly the first Google Android based handset to come out of Motorola.
Although looking at the image it looks as if Android and Windows Mobile 6.5 are out as there are no home or back buttons that can be seen in the image anyway. But at this point who knows, maybe those buttons have been shifted to the side, guess we’ll have to wait and see.
Source – Engadget
Android is open source, so there is nothing preventing Motorola from changing hardware buttons to soft buttons on the screen.