However, can you please try if pressing ctrl stops writing further letters? Just to make sure it's not a coincidence if it works, please try Shift too. It might also be interesting to know what xev says when this happens.
Have you been able to test the iceweasel/chromium touchscreen addons yet?
As for chromium extensions - I've already incorporated "Scrollbars anywhere", which is (AFAIK) most customizable "touch scroll" thing for Chromium. Using it, I was able to enable "drop and drag" (also on text/images), while still retaining capability to select text/drop page elements/whatever. I'm pretty sure everyone will find fancy customization mix for own liking. I also checked it for backdoors, at least as much as my limited skills permit