sachin007: the full-word auto-correction feature is the one I listed as item #2. That one has been around on just about all mobile devices nowadays (including cellphones, even the cheap ones). The Apple implementation improves upon it by letting you enable multiple dictionaries simultaneously, also adding entries from your contact list, and also it learns new words by adding it to a dynamically maintained dictionary (lesser used words will expire after a certain inactive period).

But, point #1 is the seldom known feature of the Apple OSK that is a good bit of sw engineering that Benz145 (and myself) tried to illustrate to you. The effect is very subtle. It's not visible, it doesn't show or hint at the next available letters visually, but it increases your chance of hitting the right letter according to active dictionary(ies).

So, to answer your repeated question, Yes, the apple keyboard can do full-word auto-completion, on top of predicting your next key input.