Updated to GB. Getting used to changes.
Seems the keyboard has changed. Lost the dedicated "smiley" key. Im a heavy texter and use this feature ALL the time. More of an annoyance I suppose. But what used to be a quick, simple insert, now takes several steps. Can't find anything in the text settings to change the keyboard configuration.
Too bad. I love the native text app, have sent 1,000's and 1,000's of texts with ZERO issues and not going to change due to this, but still......
Highly recommend Handcent. Among its many configuration settings, you can choose whether to see the enter key or replace it with a smiley key. If chosen, long press the smiley key for a gallery of 15 smilies. You can also download smiley packs for different custom faces (including the stock green android bots), and even install an emoji plugin.
The program's free, but you'll see ads on the settings pages only. You can become a paid member on their services page for a one-time fee of $6 and never see ads again. Worth the money: Handcent just updated with a few more DX function tweaks.
I used Handcent since Android 2.1 and never went back.