If you actually test it yourself you see that they only capture phone keypad presses, and the bottom hardware keys. They don't capture the actual screen keyboard at all, that's why Trevor's video does not show the actual keyboard being captured -- just like we found: http://blog.lastpass.com/2011/12/carrier-iq-verifying-your-l...

I'm not defending them, many of their practices are loathsome, but crucify them for what they've actually done.