Yes. I mean the keyboard to enter text in email, sms, notes, etc.

I feel your woes, as I share them.
What I mean, that even hunt n' peck can be just fine if done well. I advise you to try something like SwiftKey - it's a pleasant experience even with "Swype" mode disabled. It uses the similar proximity based correction algorithm, which does not blindly suggest you corrections based on dictionary, but if the correction is very probable (i.e. you presses 'r' instead of 'e', and word with 'r' does not make sense) it just corrects you in place without asking once you press space. I also guess they use analysis on how probable is that two letters could be used besides, and base corrections on this. I think it even applies it live to select proper letter when you pressed three buttons at once with your big, fatty finger. Even if it does it wrong (highly improbable), it can be fixed at the final correction.
Possibly some other clever methods that I could not think out.
Also it learns as you type. If you manually enter a word out of dictionary it is added to the dictionary. It learns how often do you use particular words, and weights corrections on this. It even analyses all your sent e-mails and sms on installation to prepopulate that knowledge.
Even in hunt n' peck it "just works" with little errors.