How Did I Forget Mikledet? Amazing Online Hebrew Keyboard
Mikledet is developed by Chen Levkovich, and Israeli from Tel Aviv, here is a quote from the about us page:
I created Mikledet.com mostly for myself (and my wife). We lived in Munich at the time, without any P.C. at home. I connected to the Internet mostly from Internet cafes, which of course had no Hebrew support. We had no possibility to send Hebrew emails, until I created Mikledet.com (well at the beginning the name was e-vrit and then just Mikledet). I wrote all the initial code at the easy Internet cafe next to Munich’s central station, and at the time I used my home page at geocities.
He has also developed 2 other amazing apps, http://skypetranslate.com/, an app to translate Skype conversations to and from Hebrew, and http://www.muftah-alhuruf.com/, an Arabic keyboard similar to Mikledet (very useful for doing searches of Gaonic Literature in the original Arabic ;-)).
Now that I have written the article that I (thought) had written before, I can tell you that Android 2.2 (Froyo) which I just updated to supports Hebrew and supports the Mikledet mobile and regular keyboards!