Turns out iOS 5 is hiding Easter Eggs aplenty. Besides the camera's secret panorama mode, an Android-style auto-correct bar has been uncovered as well.
Here's how to enable the feature in just six steps per 9 to 5 Mac:
1. Download iBackupBot
2. Backup your iPhone/iPod in iTunes
3. Open iBackupBot and find the backup, then load it.
4. Find Library/Preferences/com.apple.keyboard.plist and open the file. (if your software isn't registered you'll have to press cancel and then it will open)
5. Add in the following code: KeyboardAutocorrectionListsYES
6. Save your modifications, and then restore from backup from within iBackupbot.
As an Android fanboi myself, I can't independently confirm that this actually works. So, if you try it and succeed, let us know in the comments! [9 to 5 Mac]