The keyboard could easily switch between upper and lower case depending on what the user is actually entering. Why wouldn't they do that? It just seems like an easy win.
I don't really see how this is a huge step up in terms of usability...
Dunno about myko, but every time I use an iOS device it really confuses me. Comparing it to a physical keyboard isn't fair, since on software keyboards shift is stateful. lower/UPPER casing the keyboard is a much larger (very convenient) indicator of that state than the altered shift button.
I think I'd actually find it quite distracting while I am typing.
WebOS doees it and it's incredibly distracting; it looks like every key jitters slightly every time I hit the shift key.
Yeah, that's what a lot of the premier android keyboards do.