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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Sunnysoft InterWrite Keyboard Sunnysoft InterWrite Keyboard software displays a unique virtual keyboard on the screen and enables you to use the touch screen to type text in any supported language. Eight modes are available to significantly improve the user experience of inputting on touch screens of handheld devices