How can I teach my phone not to capitalise "It's" every time?
It seems that asking this question has encouraged me actually make a proper effort to poke around the phone's settings enough to find a workable solution, which is to enable Spell correction for the QWERTY keyboard word suggestions / predictions.

The option is enabled in the location:


Settings
Language &amp; Keyboard
Touch Input





Text Input

QWERTY section

Spell correction




Now, typing i,t,s mid sentence will produce the suggested words its, Its, it's, which is pretty much acceptable for me. it's might be third, but it's listed and that's what counts!

I don't know if this is a common problem or if the default setting for Spell correction is on or off, so I don't know what the cause of the problem was, but at least it's sort of fixed.