What's all the fuss about the keyboard? I'm not seeing the issue with the current one?
The current iOS keyboard isn't bad, it just isn't very good either. Having used the webOS touchpad keyboard, Swype and SwiftyKey on Android, and a handful of others the iOS keyboard is adequate. But every time I have to switch to numbers to input a password or the like I wish something like SwiftKey was available. Even without swype/flow mode both of them are more accurate and have better predictions/corrections. Depending on how much you're typing the keyboard can have a major impact on the overall experience with a device. I don't use messaging a lot from my phone but on days I have a conversation going on Facebook I tend to use my Nexus 4 more than my iPhone just because the keyboard is better.
It's not a situation I'd consider unworkable (I haven't switched to Android yet, but II'm close for other reasons). Now that other mobile platforms have continues to improve it is a place where iOS lags behind, though. I doubt a lot of people are going to switch platforms just because of the keyboard, but for some it may be one of a handful of factors.