You're totally on the money, btw. I was an BB then Android user and am overall happy with my iPhone 6+. But the whole T9 dialing is a huge issue.
For those who say, why not just go to contacts and click on your contact, it is about expediency. That's the whole point. That, and the technology actually exists and has existed on other phones for years and years. This is not a new concept. When I go into my contacts, first, it is a slight challenge to scroll through the alphabet to get to the right letter, and then hopefully I've selected the correct person in the S category. It's a much longer process to go this way, when I could simply type S-T-E on my keypad and it would bring up all my names that start with those three letters and I can quickly choose.
For those who say, why not just use Siri??? Well, yes, Siri is great. But you can't always speak to your phone, or maybe you have a need for privacy and don't want the world to know you're calling Steve or Stephanie.
Apple is great. I love my Apple products. But Android and other technologies are equally good, and even excel in certain areas. Apple is very selective in what it offers us, and it doesn't always benefit us. But there's always hope... I mean, look...after many years, NOW we can actually use Swiftkey on our keyboards now. That took time, but finally they allowed the 3rd party app that gave us SO much better functionality and speed options for typing/swyping on our phone and iPad keyboards.