I used to be able to type with my real mac keyboard after launching the iPhone Simulator. Typing with the on-screen simulator keyboard is just horrible when testing with lar
Removing com.apple.iphonesimulator.plist worked for me too, but I had to locate it inside the hidden folder /Users/[yourusername]/Library/Preferences/
com.apple.iphonesimulator.plist
/Users/[yourusername]/Library/Preferences/