yeah me too..the blinking went normal after a period of time without any special action..perhaps i'll try the uninstall-reinstall process..
anyway, does the rooting and installing custom rom process solve this issue (and some other issues after the GB update)? i'm planning to do so..
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I did this. It fixed not only my keyboard issue, but my navigation and notification light issue. Try it!!!
Menu>Settings>Language and Keyboard>Multitouch Keyboard>General Settings>Uncheck Next Word Prediction.
I also unchecked: - "Vibrate on keypress." And I clearned learned words. Not sure if those two changes made a difference.
Good luck!