I just installed Swype on my Android phone, and it works pretty well. Fitaly was my last favorite handheld input method, but the stylus has gone the way of the 8-Track. 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 is a bit unnerving, particularly considering this recent article at CNet Report: A fifth of Android apps expose private data (via Slashdot). So maybe I won’t use Swype to enter any passwords. But its improved functionality is mostly lost on passwords anyway.