I've heard this advice before and I've tried it, and I really didn't notice a difference. I also, unfortunately, use swipe to type a lot. If I'm typing one handed I'm pretty much always using swipe. Sure it barely works, but that's the same as if I was typing normally so feels like a wash.

Keyboard works fine. Always has. iPhone just has so many users that there's going to be a plethora of passionate unpleasable nerds for every single facet of it. Even in your ideal virtual keyboard version, there was an army of people complaining that it wasn't a hardware keyboard.