I'm one of the developers of WordWise. Thanks for the link to the review...hadn't seen that yet.
Yes, we realize there are issues with the game. We're currently working hard to improve the UI and the server speed, as well as adding in some of the features people are requesting. This is our first multiplayer game, so bear with us!
We're using Google App Engine as the server, which seemed like a natural fit since it uses your Google account for authentication (and all Android phones are set up with an existing Google Account). That's also the reason why we're only supporting v2.0+, because starting with 2.0 there is an API for allowing apps to use the authentication credentials from your Google account without you having to manually enter your username and password. We're still not sure why some people are having the captcha prompt from Google more than others. In any case, the vast majority of the Android ecosystem should be on 2.0+ by the end of the summer, so nearly everyone should be able to play.
The number one request is a better notification system. The problem here is that Android did not have a native implementation for push notification (until Froyo, anyway). So to have automatic notifications we would either need to poll every few minutes or maintain a persistent connection with the server (which you can't do with Google App Engine). We could use SMS for notifications, but not everyone has unlimited text packages, and we don't want people being unknowingly charged for receiving WordWise notifications. Everyone has Gmail, and while it's clunky, it seemed like a decent first cut approach. We're still looking into other options, but we might have to wait to support automatic notifications until most devices are on 2.2.
We're also planning on releasing a free ad-supported version that limits you to 3 concurrent games. Still, trying out the paid version is relatively low-risk (you can return any app within 24 hours, no questions asked). For those who've tried it out, thanks! We're actually upgrading the server this weekend and hopefully releasing a new client too.
Oh, and we're also going to be releasing stat tracking, so every player will have a stats page (win/loss record, best words, etc.). Eventually we'll also have a ranking system so you can find people to play who are around the same skill level as you, or challenge people higher ranked to move up in the rankings, but we're not quite there yet. In the meantime, all those stats are saved in the system, we just need to make them presentable. (So yeah, statnut, you currently have the #1 word, "traveled" for 176 points...can't see that being broken anytime real soon.)