AnySoftKeyboard keyboards pack:
Hebrew keyboard layout (regular, 16 keys and Phonetic) physical keyboard mapping and dictionary (about 80000 words).
Note: This will NOT install Hebrew fonts on your device!
If you want a a bigger dictionary, look for the "Large" version of this pack (paid version). ** Install AnySoftKeyboard first, and then select the desired layout from AnySoftKeyboard's Settings->Keyboards menu.