I can only echo your sentiments here man, I demo'd MobileSSH and have midpSSH installed, and it's just really hard to use with Suretype. I'm pretty much hanging out until a 83xx release to purchase the MobileSSH license (it's a great app, IMHO) to get the qwerty love. The lack of being able to do tab completion is a killer -- anyone who lives on the cmdline can attest to this as well, I don't think I've actually *typed* '/usr/local' in years.
I've read reports of the flashing hourglass with the new TIM 4.2.1 release over in the main thread, I don't think there's much you can do about that. It seems to only happen to some people, and with some programs. :-/