Well, if that bothers you, maybe you should have a look at
www.apple.com.au.
And I doubt the onscreen keyboard could be any worse than T9 or those tiny keyboards on the blackberry, or those Samsung mobiles with keys so tiny your fingers hurt after a few minutes of use. Lets face it, text input on mobiles sucks, period. You won't use the iPhone to write your novel, but then, thats not what mobile phones are for.