I thought the dial pad with T9 that came with Sense was pretty awesome, but it definitely has some frustrating limitations. In seemingly random instances, it would disable T9 text prediction, reducing text entry to the level of the most ancient dumb phones. I noticed the lag, but it never really bothered me that much.
Still, I never tried another KB until I heard about Swype, and I haven't gone back since.
I absolutely cannot handle a full QWERTY in portrait mode unless it's in Swype. I can't fathom how you guys manage to be so precise without giving it your complete, undivided attention. Compact QWERTY is a benevolent addition for former BB users, but I couldn't get the hang of it.