I wouldn't mind if similar _common_ words are mixed up. But the current state of the iOS keyboard and also gBoard is that it sometimes just makes really unhinged suggestions (at least in my native german). Words I never used before and that I didn't even know existed. I think a small AI layer on top would probably fix that, just the likelihood of next words multiplied somehow with what I possible could have swiped.
My guess is that an AI layer already present _is_ the reason you're seeing these unhinged suggestions. Earlier generation iOS keyboards were much more accurate and reasonable.
In German, it's also extremely annoying that even common compound words will not be suggested. Google Keyboard has somewhat improved here, but FUTO Keyboard still drops the ball on this completely.
What'd be nice for compound words particularly in German is a way to enter them separately and have them merge either automatically or as an option above the keyboard.
Eg enter Bürger Dienste and have it autocorrect to Bürgerdienste. Or even Führung Kraft and turn it into Führungskraft (inserting an s).