It is no longer an issue in Natty. Layouts are now updated in the menu, although they don't seem to match the label shown (correctly) in the indicator. I think this was another bug, so I'll search for it or report a new one.
** Changed in: gnome-settings-daemon (Ubuntu) Status: Incomplete => Fix Released -- You received this bug notification because you are a member of Ubuntu Desktop Bugs, which is subscribed to gnome-settings-daemon in ubuntu. https://bugs.launchpad.net/bugs/621633 Title: Keyboard indicator does not update the current layout in its menu when switching through a keyboard shortcut -- desktop-bugs mailing list desktop-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/desktop-bugs