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I disagree that it's necessary and I wish I could disable it. They even have it enabled on iPads, which are a tad larger than the original iPhone, and which can be used with the official stylus.
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"Necessary" was probably too strong a word. I'm definitely no expert so I can only offer anecdotes, but for the first ~decade of iOS, the keyboard felt amazing to use. I felt super fast and typing mistakes were rare. Now I feel like I'm constantly fighting the keyboard to type the letters I actually want to type.

Agree at this point that I would disable it (in its current state) if I could, but when it worked correctly it was a huge boon to typing.

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Ok so it's not just me. I never had predictive text enabled but stopped being able to type easily when I switched from iPhone 5 to 12 mini. Thought I needed to get used to the new phone, but it's been years.
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I wonder if it's an optimization for the monstrously large phones they make today, and on a reasonably sized phone such as my 12 mini it doesn't adapt well.
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