Yep
If you don't want to do things in The One True Way that Apple dictates, you're out of luck!

I wrote a text on an iPhone a week or two ago, it took me about half an hour and I very nearly stamped it into tiny pieces.

I got Barehed for Cardiff I think not barehee - it will try and guess I think, you can often get combinations that aren't words where it's obviously trying to make its best guess.

@ ThomsonsPier - I have the full OED at home. It takes up about 5' of shelving. Expecting a phone to know every word, ever is a bit optimistic even in these days of large amounts of storage. Remember it will also have T9 dictionaries for several other languages! Having to add them the first time you use them isn't exactly much hassle really...
(Son of Sam-i-am We're all as mad as hatters here, Wed 25 Feb 2009, 12:04, Reply)