The other day John Batdorf, a sharp guy I work with, stopped me in the hallway and dropped me an email note (which he sent from his iPhone of course) regarding my recent comments about my 10-minute experience with the iPhone. He bought one on the first day and has a great write-up about his experience with the device on his blog.

Specifically, he wanted to get me to check out the on-screen keyboard and the fact that my experiences with key-misses are actually dealt with in software by the iPhone.

Just thought I would mention how great the keyboard really is. Even
when you miss the correct key while typing a word the phone does an
excellent job figuring out the correct word.

I probably missed ten to twenty words above and the phone got them all
right. This entire email took me about one minute to type.

John

Sent from my iPhone

John Batdorf

I'm glad John caught me, handed over his iPhone for a few minutes, and let me have another go at the on-screen keyboard. Sure enough, for the most part if I hit an adjoining key while typing characters, the device was able to figure out what I'd screwed up and correct it for me. Not too shabby.
 
So, I stand corrected. The keyboard's quite a bit better than I first thought. One more plus for iPhone.