My primary issue with the keyboard is that it's very close to the four un-beveled buttons below the screen. I'll quite often hit "back" when I mean to hit "?123" which is pretty annoying.
I've also had good success with the new voice recognition feature for short emails and text messages.
Overall the keyboard is much less polished than the iPhone but I was pleasantly surprised at how usable it was.
I'm always trying to force myself to use the G1's software keyboard, but I can only seem to use it in one of two ways: wantonly mash and hope the predictive/spelling correction code figures out that I typed "devtsvuldt" but meant "spectacular" (thus pausing periodically to carefully click the correct suggestion), and occasionally being forced to abandon a word and backspace it out because it is so mangled that even Google's rocket scientists couldn't write a spelling corrector that can figure it out; or meticulously pecking words out letter-by-letter, trying to enter that zen-like state of mind where my fear of misspelling has been released, and my fat white thumb is free to alight on the correct section of touchscreen as if guided by the nameless Tao itself.
Both are excruciating compared to finding the two little nubbins on "F" and "J" and going from there.
You know, I hate to say it, but I don't actually know. I don't have large fingers, but I've always had trouble with software keyboards, from the iPhone to the Blackberry Storm family. Just today I was getting a Blackberry activated and found the experience of addressing a PIN message absolutely excruciating.
The Droid just seems to know what letter I'm going for, and almost always picks the right one. I'm not sure if this is a byproduct of better resolution on the touchscreen, more intelligent software in the background, or some quirk of my fingers and the Droid's particular implementation, but I simply don't experience trouble hitting keys anymore.
I suppose its possible that the change is me, not the Droid, but to this day I find most other platforms difficult to use, and pine for my Droid's keyboard whenever I'm on another software device.
http://www.androidcentral.com/download-beta-version-swype-an...
My gold standard for keyboards is still my hp200lx!