I'm happy with the virtual keyboard, and wouldn't use a physical one.
Why? Because the only physical keyboard that I'd use is a full-size or near-full-size keyboard (numeric keypad optional). I like the iPhone because it's small/compact, and easy to carry. Having an extra keyboard would defeat that purpose, and an integrated keyboard would make the iPhone bulkier, would not rotate with the orientation, and would not be configurable (think ".com" key, etc., etc.).
With autocorrect, the virtual keyboard is pretty easy to use.
Why? Because the only physical keyboard that I'd use is a full-size or near-full-size keyboard (numeric keypad optional). I like the iPhone because it's small/compact, and easy to carry. Having an extra keyboard would defeat that purpose, and an integrated keyboard would make the iPhone bulkier, would not rotate with the orientation, and would not be configurable (think ".com" key, etc., etc.).
With autocorrect, the virtual keyboard is pretty easy to use.