For the OP, is the issue in landscape as well?
I don't normally use landscape as I often try to use my phone one handed. But it's obvious landscape is better than portrait thanks to the larger keys.
The reason why I say it's a Major issue because I actually only know 2 people who used WP, and they had to put them away because the KB frustrated them, I could live with it because I text less but when I do text often find myself making typo unless I focus my eyes on the kb, while with the G2 and I can just look at my text and fly through it, and I have been using WP since 2010, and just pickup G2 from my friend to compare the 2.
So when I find that the KB design on WP8 is the same as WP7, it really scared me.
There must be something about the design of the KB, whether the color is too dark, there is no shadow that make the keys look bigger, letter is too small, alignment of the row is not logical. When you look at the physical KB on your laptop, the rows of keys do not align in the same vertical row, somehow WP KB designers think they can reinvent the wheel and make them align, this I think is a major bad design of WP kb