Physical keyboards definitely feel more accurate and nicer to type on. I could have gone touch only when I got my phone, but I specifically went with the Droid rather than wait for a Nexus One because I wanted a physical keyboard. I don't understand how people can use those on screen keyboards all the time. There's no feedback whatsoever.

I can understand it, but I too prefer my Droid's keyboard.

Or if you need the precision and speed that a physical keyboard provides (until Swype or something changes the game).