I just tested KBShortcuts v1.2 on my iPad2 with iOS 5.0.1 and it seems to work well. However, before installing this I could drag the keyboard to a new position but now I only get a menu with the option to split or undock. I am not 100% certain that this was a change introduced by KBShortcuts or just me doing something wrong. Regardless, the features of KBShortcuts more than make it up to me.
This tweak is absolutely essential to me. :-)