Imagine if MS utilized a new method of typing with a controller to make it a not so horrible experience. For example, a lot of games (especially FPS) use a kind of HUD where you angle the stick to choose a weapon. Imagine if you could use that method to type.
Angle the left stick up for an A, angle it up+right diagonally for a B, right for a C, down-right for a D, etc.
A-H on left stick
G-O on right stick
P-W on pad
X is X, Y is Y, Z is... whatever. Who uses Z anyway.
Would take adjusting, but would be WAY better than scrolling to each letter.