In order to have the attention of Swype/Nuance, we have to take action: give the app lowest rating in Google Play!
Unfortunately, that is the only way I can think of that may actually make them fix these bogus issues.
Many of us have received responses from Swype saying that their developers have been working on the issue. But with the latest update (3.0.4), none were fixed. Bad! Sad!
WhatsApp had to bring back the simple "status" update after getting hit with low ratings on Google Play. Let's do the same here :-)
Yes, the current version of Swype is badly broken, and users who want to swipe up to capitalise are recommended to revert to version 2.X.
If you do this, you will want to prevent automatic updating of the app. It is easy enough to do this. Just find Swype in My Apps on the Google Play Store, hit the three dots menu icon in the top right hand corner, and untick auto update.
Swyping up to capitalize was the best feature. My iPhone friends were jealous. This is the sole reason I created this amount to plead for its return. BRING IT BACK!