I think the OP is referring to typing in e-mail or text. I'm pretty sure that the predictive typing isn't active when entering a website into Safari (THAT would be annoying...), or using a text box on a web page.
To the OP: this isn't new. Last year, Chief Twit Leo Laporte was complaining about the same thing when trying to type his name...
Some say that the more you type it in, eventually the software recognizes the word...