The video shows that the software does work on the Apple iPhone keyboard. The one time it failed is a testimonial to the apps ability to make sure that incorrectly spelled words-like, oh, testimonial-do not make it to your screen. Of course, you need a jailbroken iPhone to download this software. You might also notice that the pop-up keyboard would show its face occasionally, but that should go away as the user becomes more used to the Swype technique.
source: YouTube via iPhoneDownloadBlog