I've seen this question asked several times. And as far as I know Corina is correct. One can change to another input method in landscape mode (and back again in portrait mode) on a case by case basis. That's definitely not ideal, of course. It would be better to have a default input method based on the screen orientation but as far as I know no such application exists.
But I'm not sure that people asking the question understand that the Swype keyboard can be "tapped" just like the default android keyboard. I don't like to use it that way but I'm not a "thumber." In any event it seems no worse (to me) than the standard tap keyboard for the Droid.
Wow, maybe it was just user error or the older version I was using.. but it seemed like tapping each letter would allways bring up the box with several words in it.. slowing you down. But I just tried, and it works just like the normal keyboard (just like you said

). The keys are larger as well, which is nice.... And the long press switcharoo is an ok workaround as well... thx guys!