I actually found this to be a great tool to help our son improve on his spelling and word recognition. He does try to sound out everything he types, but he spells those words phonetically. It was so funny to see that he is typing and entering text for a minute and a half and then see a message like "ok" pop up. Plus when he cannot read a word I have typed, he just yells over to me because I am right in the next room. He also seems to have inherited my tendency to overuse smileys.
Here is a sample of the chats I've had with my son:
6:15 PM Jake: I Luvy You Mom mom
me: I love you too Jake! :)
You made me so happy!
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6:37 PM Jake: wut or you duoing <3 >
me: Talking to Por-Por on the phone.
6:38 PM Jake: ok
6:40 PM tup
6:43 PM me: Did you remember to write the book on your paper hand?
Jake: It iz fhone ;)
6:45 PM me: Are you hungry for dinner?
Jake: yes
me: Me too. Is Baba sleeping?
6:46 PM Jake: yes
me: I want him to make breadsticks.
6:48 PM Jake: I wil tei him <3>
6:49 PM me: Thank you! :D
6:51 PM Jake: yorwelkum B-)
6:52 PM <3>
It took me forever to figure out what "tup" meant. It was not a one-time error because he used that word all the time. I finally asked him about it and it turns out he was trying to say "type." He always says that when he thinks I am not responding quickly enough to his last message. It seems he's inherited my impatience too.