Hi ya'll. I have deleted the keytracer.apk and I haven't noticed any problems. I googled what the apk it about and found that it is part of touchwiz but it has a lot of permissions:
add/modify calendar events and send email to guests, read calendar events, read contact data, read user defined dictionary, write contact data, directly call phone numbers, send sms messages, find your location and gps location, edit sms or mms, modify gmail, read sms or mms, receive wap, control near field communication, create bluetooth connections, full internet access, USE THE AUTHENTICATION CREDENTIALS OF AN ACCOUNT, modify/delete sd card contents, read phone state and identity, change your audio settings, take pictures and videos, bluetooth administration, change dial up network state, change wi-fi state, change wimax state, change UI settings, disable keylock, format external memory, modify global system settings, mount and unmount filesystems, prevent phone from sleeping, retrieve running applications, write access point name settings, write sync settings.
So i deleted it like I stated before and I haven't had any adverse reactions, everything works.