This happened once last night and again just a couple minutes ago. Last night I was trying to get my wife to try Swype (beta) and she would swipe to write a word and nothing happened. I took it back from her and tried and it looks like the phone is recognizing text input (suggested word box pops up) but nothing shows in the text box. I turned it off and went to bed and in the morning it worked fine. Today I was texting myfriends in WhatsApp and the same thing happened. I would type and nothing would show up in the text box. But when I hit Send, what I was actually typing got sent. After a couple minutes it resolved itself and its working now.
This is weird and annoying. Anyone else have this problem?