I am a long time user of the Palm Treo which has a great keyboard. I couldn't do anything with the Droid keyboard. Hated it. And to echo others:
Swype is the greatest app you'll ever install. Try it, it's free.
This is funny, because I'm the COMPLETE OPPOSITE of this. While the physical keyboard on the Droid is lacking compared to some of my older phones having a physical QWERTY, I adapted to it pretty quickly and I use it for everything now. Maybe it's because I don't have monster fingers? I don't know...but I have zero problems with the physical keyboard. Sure, it could be much better, but even in its current state, I find it much easier to use than a virtual keyboard.
And as for Swype, I've been trying to use it on and off for the last few weeks since everyone seems to love it, and I absolutely HATE it. Admittedly, I seem to be in the minority on this, but I just don't like it. To each his own, I guess.