It's common sense that these would be blocked. The kitkat keyboard supports swiping. Take "AMD" for example. The vast majority of the population will never, ever use "AMD". They will constantly use "and". Imagine how annoying it would be if while swiping it regularly came up with AMD instead. or if you ended up calling someone a geek instead of Greek.
This is likely just a list of words that are rarely used by normal people and would be awkward/annoying if they accidentally popped up. I'm sure the more benign ones were an issue for testers. They are clearly blocked to improve usability of the keyboard/swiping.