I was going to say something sarcastic about how most of us still remember the order of the alphabet, but then I realized that there is probably another reason for their choice. Unless the software keyboard is going to have four wide rows, alphabetical order is probably better. In the video the keyboard is a 6x6 grid, which lets it fit alongside the search results better.

I like the Boxee Box remote, which has a QWERTY keyboard on one side of the remote, which is a better solution than having an on-screen keyboard.

It's nice and small but it's almost impossible to read the keys in a dim room. I think remotes have to be backlit to be usable.

Those keyboards are the devil, they're the most infuriating part of modern technology.

The most sensible work around seems to be generating passwords based on the keyboard type, having passwords that don't require jumping up and down left and right for every new character reduces the experience to a mild inconvenience. Fortunately I've not had to use a device with such a keyboard in a while, since putting my Apple TV in a box... if I ever have to go near one again then investing an hour putting together a keypad friendly password generator may be in order.

Mercifully, MS put out an update for the 360 that made that keyboard into a QWERTY keyboard.