I just installed [Swype](http://www.swypeinc.com/) on my Android phone, and it works pretty well. [Fitaly](http://www.fitaly.com/) was my last favorite handheld input method, but the stylus has gone the way of the [8-Track](http://en.wikipedia.org/wiki/8-track_tape). This method is fast and intuitive; it does a good job of guessing what word you want based on your finger’s scribbling across the (slightly larger than the default Android) keyboard. It’s not perfect; sometimes your finger will be hiding the keys you want to slide over, forcing you to pause and misspell. But given how awful most handheld input options are, it’s a fine improvement.
[This warning screen](http://beta.swype.com/android/welcome/detailed/) is a bit unnerving, particularly considering this recent article at CNet [Report: A fifth of Android apps expose private data](http://news.cnet.com/8301-27080_3-20008518-245.html) (via [Slashdot](http://yro.slashdot.org/article.pl?sid=10/06/23/1429249)). So maybe I won’t use Swype to enter any passwords. But its improved functionality is mostly lost on passwords anyway.