Since we're not directly punching in the keys, the software assumes the words we are most likely to be typing. Sometimes, the traces of certain words are too similar, and add to that the imperfection of our movement, Swype will not get the correct word 100% of the time. So when it's confused, it'll give you the words that best match the trace you've provided. That is, if you were trying to type pretty, most likely you'd be seeing the page in question with a list of words such as pretty and petty.
This feature, I like, as I'd imagine most of the users would.
But every time we this feature is enabled and we choose not the first word, the one that best matches the trace you've provided, it'll show a "tips" page informing us on how to remove such words. And it keeps on popping up, long after you've memorized every word on the page.
Even worse is that if the word whose trace is similar to another word happens to be in your contacts, you're just screwed. You can't delete the name from Swype dictionary, which means if you have a Facebook friend named Holly whom you haven't seen in the past 6 years, every time you try to type holy and don't get the trace perfectly, you'll be seeing this page.