It’s great to see that even Microsoft wants to do something with Android Wear and I think a keyboard app is a good next step, after their OneNote app for Android Wear was released a while back.
Microsoft’s Research Team released a prototype keyboard app for Android Wear a few days ago and the way you enter text is something no other Android Wear keyboard app does, using handwritted letters. The app supports watches with a 320 x 320 resolution including circular smartwatches like the the Moto 360, and special characters and numbers can be typed without a hitch.
Minuum and others have tried different ways of inputting text onto a small screen, including a smartwatch but I think Microsoft’s way requires less of a learning curve, albeit not as fast as say voice input.
Microsoft has decided not to release this on the Play Store at this time, so the only way you can try this on your Android Wear smartwatch is by downloading the apk and installing it through ADB. It would make sense to release this on the Play Store once it comes out of its prototype stage.