Try the FREE 24hr version (to see if you like it) of Ultra Keyboard. It has LOADS of options like what you describe, plus swype behavior - they call it tracing, an option to put cursor keys on the keyboard (like the HTC EVO keyboard) change the height of the keys AND- they have your magnify and move cursor idea you suggest from iphone.
Don't know how iphone's is different- I don't have an iOS device to compare to- but Ultra Keyboard does have this behavior. I thought it was cheap enough and I switch back and forth between this keyboard and swype- I just wish I could make the letters more BOLD on the keyboard. But a solid app IMHO- and not all that expensive for the full version.