It seems HTC has addressed all of the criticisms except for the lack of a capacitive screen leveled at their HTC Touch Diamond keyboard.
The new keyboard, which will ship on the new Touch Diamond 2 and Touch Pro 2 adds visual feedback through a large pop-up above they keys, audio feedback through a nice typing sound, and also haptic feedback through subtle vibrations when keys are pressed.
Auto-correction is also very good, with simple typing errors still resulting in the right word being produced in the end.
I have tried the keyboard on the Xperia, and they typing experience is very good on th3 3.2 inch screen. I can only imagine how good it must be on the Touch HD and similar large screened devices. A cab is available for download, but messes up the key mapping of the hard keyboard on the Xperia, and is therefore not recommended.
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