Problem 3: The bubble has the word it's going to replace with as well as an "X" -- the naive user will think that tapping the bubble will activate the word, and

Problem 3: The bubble has the word it's going to replace with as well as an "X" -- the naive user will think that tapping the bubble will activate the word, and tapping the X will remove the bubble. It turns out, that tapping the word itself behaves the same as the "X". Actually, pressing the x will indeed remove the bubble and not force the word correction. Maybe you are not pressing the x correctly?