The Windows Phone 8.1 SDK has been updated and a new feature reveals itself. Low-profile keyboard is coming with Windows Phone 8.1, which will take much less screen space than the existing one. It was desirable by many and seems with Windows Phone 8.1, Microsoft is trying to set some kind of precedent of bringing huge number of user-desired features in one single update.
If you go through the above slide then this new Keyboard looks really powerful with features like word-wrapping, line-breaks, multi-line support, text-formatting. It certainly compares to Windows 8 keyboard in terms of features.
Thanks Xio-Feng for the tip. Cheers!!