This is pretty much how the stock Android keyboard works. It's been able to spot missed keys since at least Ice Cream Sandwich - e.g. I just typed "kettrt" and it's suggesting "letter" as a correction. Since Jelly Bean it's also had some bigram support too (guesses the next word based on the previous without you typing anything).
Aside from the "typing without a keyboard" part, it's not obvious from the video how Fleksy differs from this, but the focus on blind users probably makes a difference.
But does Android use context clues? iOS can't quite handle the two-letter distance, but it accurately corrects "kryywt" (kryuwt is too far away) without any context.
ah, i forgot about bigrams - that's a really great idea. I wonder if it's packing a huge machine learning library though... wouldn't that take a ton of space? I saw in another comment that it takes a while to start up - maybe that's why
Aside from the "typing without a keyboard" part, it's not obvious from the video how Fleksy differs from this, but the focus on blind users probably makes a difference.