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Go to Market -- sorry, Play -- and get "Hacker Keyboard". It's free and offers a more sensible layout to your Android device's onscreen keyboard.

Actually, there's no need to. Terminal IDE already comes with it's own replacement keyboard.

I actually find Hacker Keyboard to be a bit better but ymmv.

I have an Asus Transformer and use this regularly, and it has suited me quite nicely on numerous occasions. If I go away for extended duration of time, I don't have to lug around a laptop with me.

Also note that I do a lot of my active development in VIM, so take that into consideration.

If you're using something like a transformer prime or any tablet with a keyboard I can see it being useful.

It comes with telnetd and sshd so you can connect to it using a regular PC, if you feel like it. I also wonder, can you plug a USB keyboard into an android device and have it recognized (using a full size to mini USB adapter)?