This is funny because as soon as I posted that I swapped out my phone two times and told people about it, they were quick to jump on my case and say that I should stop swapping them out. But like GoodTroll stated, this issue didn't only occur while I was in the Itunes password, it would happen at any given time. The fact that no one wants to accept that it's a real issue is because they don't want to do anything about it, they just want apple to come to their house and fix it for them, not do something about it themselves. Lazy people want to convince themselves that it will be alright so they can sleep better at night.
I paid a bunch of money for this stupid phone and it needs to work just as well as my old iphones, not worse, and if I feel like going to apple to switch it out a billion times to get it right, well I can do that, it's my phone.
On another note, when I was at apple the first day the guy told me that when he scanned my serial number, it got flagged by apple as a problem phone from a problem batch. This didn't make sense at first, but then when he was grabbing a replacement phone from the large drawer of replacement iphone5s, he scanned one and pulled it out of the box and was about to set it up but then he looked at his scanner thing and put the replacement back in the box and took it to the back. He then grabbed a new one out the drawer, this lead me to believe that one was defective too and it showed up before he even gave it to me. Now I believe that my first replacement might not have shown up as a problem one but it too had the same problems, if not worse. I bet that the problem has to do with the new thinner screens, maybe they're too thin?.. In any case, the people at the apple store aknowledged this as a problem. Even while I was waiting for my phone, a lady came in with the same problem and they were quick to replace it as well.
Now to sum it all up, It's been four days since I got my second replacement and I have yet to experience the glitches, I even purposefully went to the app store and sat at the login keyboard to search for glitching and multiple other keyboards as well. So to quote GoodTroll yet again, if this was a software issue why isn't my new one doing it and why did my other iphone5s do it and not only in the app store.