Take a look at Keepass2Android, I like it a lot.

> An "acceptable" alternative would be to implement an indirect clipboard in which a trusted keyboard application can replay the string for a short duration but that's not going to happen either.

Actually Keepass2Android does just that - it provides an (optional) dedicated keyboard layout that you can install and activate.

> Whats worse is that probably most people who use a PWM on a mobile device choose to have a PIN lock on it after supplying the initial PW which reduces the PW complexity even further.

Some password managers have the option for using a part of your password after the database is unlocked - you get a limited number of tries (configurable) and the database locks if you don't guess the short code.