I saw a video on youtube (now removed) where someone talked about the new iPad features. And the new text correction features are hugely improved over the iPhone, including that text replace feature.
Apparently the new software detects if you've failed to press spacebar and splits the words intelligently, and it will present the various word possibilities using that replace function, saving you from having to delete and retype misspelled words.
Oh no wait, the video's here: http://www.youtube.com/watch?v=i8sU_DnYeXo
Awesome! I regularly have to go back and delete 'n' and 'b' from my texts or emails there were meant to be spaces when I type on my phone.
Me too. So funny - as proficient as I've become at typing on the iPhone, this very issue is the cause of easily 3/4 or more of the errors i still make that don't get properly auto corrected. I'm REALLY happy about this