iPhone Software 2.0.2 - Still Slow

When Apple launched the 2.0 branch of iPhone I was very excited. New features and functionality. Some improvements in other areas. The worst new feature is the ultra-slow keyboard when composing SMS messages. Is there some kind of server-based round-trip happening here? All other keyboard functionality is great but on 2.0, 2.0.1 and 2.0.2 the keyboard is consistently slow when typing SMS. Each key typically takes ~500ms to respond to input. Over the course of owning the iPhone I've gotten very comfortable with the keyboard and now it's the most frustrating device I own.