Yes it DOES! I wish that function were in a widget. (yeah, I'm never satisfied)
NOTE: If you try this, you have to FIRST uncheck all the keyboards that are there, then the Android keyboard gets unhidden, as well as the Chinese "Pinyin" keyboard. You have to go BACK into settings and un check those too. But I can see how this would make a session using a USB keyboard a lot less frustrating.

Oddly, any change to keyboard settings sets the screen back to portrait mode. Changing the auto screen shutoff does this too.