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This is the standard password entry behavior on iOS, so I can't change this, sorry.
This should be fixed. Are you using the latest version? (4.1)
Did you use a Wi-fi connection at Starbucks or a cellular connection? Maybe they have a firewall in place?
Enabling the "Debug Log" setting in the connection's settings might help to find out what's going on.
You can sort the connection list manually by tapping on the Edit button and dragging the entries.
I submitted the iPhone version to Apple 10 days ago. I hope Apple approves it this week.
You can find the website with screenshots of the iPhone version of Textastic at http://www.textasticapp.com/iphone.html
There is also an updated manual available at http://www.textasticapp.com/iphone/manual/
Customer support service by UserEcho
I'll have a look at the crash logs you sent.