Have a Droid, and I'd suggest that the difference between the keys is subtle, but not non-existent. Best idea is to get your hands on one and try it. I love it and have had almost no problems typing on it, but it seems to be a love it/hate it sort of thing. That being said, I hated software keyboards... until the Droid. I actually find myself using the software keyboards (one for each orientation of the phone) more often than the hardware keyboard.
What about the Droid's software keyboards are different that makes them more usable?
I'm always trying to force myself to use the G1's software keyboard, but I can only seem to use it in one of two ways: wantonly mash and hope the predictive/spelling correction code figures out that I typed "devtsvuldt" but meant "spectacular" (thus pausing periodically to carefully click the correct suggestion), and occasionally being forced to abandon a word and backspace it out because it is so mangled that even Google's rocket scientists couldn't write a spelling corrector that can figure it out; or meticulously pecking words out letter-by-letter, trying to enter that zen-like state of mind where my fear of misspelling has been released, and my fat white thumb is free to alight on the correct section of touchscreen as if guided by the nameless Tao itself.
Both are excruciating compared to finding the two little nubbins on "F" and "J" and going from there.
>What about the Droid's software keyboards are different that makes them more usable?
You know, I hate to say it, but I don't actually know. I don't have large fingers, but I've always had trouble with software keyboards, from the iPhone to the Blackberry Storm family. Just today I was getting a Blackberry activated and found the experience of addressing a PIN message absolutely excruciating.
The Droid just seems to know what letter I'm going for, and almost always picks the right one. I'm not sure if this is a byproduct of better resolution on the touchscreen, more intelligent software in the background, or some quirk of my fingers and the Droid's particular implementation, but I simply don't experience trouble hitting keys anymore.
I suppose its possible that the change is me, not the Droid, but to this day I find most other platforms difficult to use, and pine for my Droid's keyboard whenever I'm on another software device.
If you root the device you can install the same HTC input manager (keyboard, AKA the HTC_IME) and use that as a replacement keyboard, which is MUCH better. It's better out of the box, and as Nwallins said, it's even better once calibrated.
Note for future readers: "Touch Input" (HTC_IME) can be installed as a package on the "vanilla" Android OS without rooting. It breaks your hardware keyboard, though (even on a rooted device).
