Is there anything faster than Veency for iPhone?
I've tried Veency on both an iPhone 3G and an iPhone 4, and that looks to be the fastest possible speed to get out of it. Unless someone rewrites Veency or writes another VNC server, it looks doubtful that speed would get any better.

I've relegated myself to either looking at the iPhone's screen while typing, or pairing a Bluetooth keyboard with the iPhone.

Edit: If you don't mind looking at the iPhone's screen, you could try iSynergyClient, the Synergy+ client for iPhone. Right now it only has mouse support, keyboard support is still in development.