when you go to keyboard in settings, the bottom will be "built in keyboard". i unchecked everything, auto correct, auto capitalize and auto punctuate. after doing this, i've found the physical keyboard actually works. it might still miss a press of the spacebar, but its rare, and not the norm as it was before.
i was wanting for someone else with the keyboard issues to try this, to see if my case is isolated or not. but this gives me hope that my keyboard can be fixed with an update, and not simply getting a new phone. (im really really missing my auto cap and punctuate though,lol)
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So i unchecked it all and switched to Swype as input method. Everything but my N key seems to work fine now. That one still misses:frown:. Please post if you find anything else that helps cuz I have gotten spoiled with auto cap/punctuate.