I've been without a hardware keyboard since I got my LG Dare almost two years ago now, and I'm used to it. I tried the keyboard on the the incredible, and it's jusr about the same as the one I've been using.
I didn't like how fingerprinty the screen was, but a good scratchguard thing will fix that.
Or a simple wipe every once in a while. On my Desire, it's not particularly endearing when the screen's off, but when it's one, you can't even see the prints all over it.
After having the Nexus One for about a month, I can honestly say that it's rare when I find myself missing a hardware keyboard. The screen is so large that the touch keyboard is very useful and the auto-correct handles 99% of my mistaps with ease. I'd suggest that reluctant soft keyboarders at least check out a demo phone, you might be surprised.
As for the software keyboard, HTC has been lauded for a long time in putting together the best in the business. Even to the point at which people started repackaging the .apk for other non-HTC android devices.
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I didn't like how fingerprinty the screen was, but a good scratchguard thing will fix that.