as I'm (or I was, I'm not sure, I don't use Falcon that much these days + I've got Alan's Eiffel instead of my old one) also witness of such strange key-repeat behavior (it started to happen after 1.04 -> 1.11 update on my old Eiffel) on newer FreeMiNT kernels plus we all know some issues with keyboard handler generally (insert key in some applications, Texel and Kobol from what I remember), what about reverting that new keyboard handler to the moment when someone will want to fix it?
IIRC, that handler was one of the last Draco's works, I clearly remember when he included it into source tree, Insert key in Kobold + some other things in Aniplayer stopped to work, i.e. it wasn't totally bug-free. And since we know everything (Eiffel included) works well in plain TOS and older (1.15) kernels... it seems like good idea to me. What do you think?