With Firmware 2.2 (still beta), Apple seems to finally have decided that it should be up to the user wether he wants his typed-in texts to be auto-corrected or not.

The new switch can be found on the keyboard settings page. However, Apple still not communicated when the new firmware is going to be released.

CToggle is a new application that can be installed via Cydia. It gives you the option to quickly enable or disable the auto-correction function on sms-messages and mail for your chosen language. I know lot of you get really annoyed by this, so finally there’s a solution for this little issue.
» Cydia – CToggle (enable or disable auto-correction)