Swype has had iOS demos since they launched. The source of this article doesn't prove anything other than that Apple and Swype have talked in the past, which is

Swype has had iOS demos since they launched. The source of this article doesn't prove anything other than that Apple and Swype have talked in the past, which is only logical. Sounds like they couldn't come to any agreement though. From the comments in the reddit post the VP (and probably most people at Swype) just want an Apple deal and it's Apple that won't go through with it.