I use SwiftKey and it's fantastic. I'm personally not a fan of swype but find the SwiftKey keyboard the easiest and fastest to use. Best couple bucks I ever spent.
I want to say I saw a download for a predictive text dictionary somewhere on here, but right now I'm on my phone. But a quick temporary fix may be to switch to a non-stock keyboard like swype or another one for the market in the mean time.
Sent from my Sprint LG Optimus S running Gingerbread 2.3.3 using Tapatalk
GB keyboard in the Market will do predictive text - for some reason it doesn't work correctly in the update. LG is working on it though. If you did take the update and are having issues, you can now be flashed back to Froyo until LG releases a fix - just take it to any Sprint store that does service/repair, or PM me for the file.