I have just found the solution for GWT 2.1.1 version. Here it is:
First you do not use a 'SubmitButton' in your FormPanel, because it
turns out that it causes all the troubles.
Use a 'Button' instead and add a 'ClickHandler' to it, and call
'your_form.submit()' inside the 'onClick()' method.
You will find that after using 'Button' instead of 'SubmitButton' all
the input fields in the form has lost their
initial 'submit on Enter' behavior, which was observed at the
beginning.
Now attach to every input field a 'onKeyDown' handler(if you want, of
course) and check the event's native key code upon 'ENTER', and if yes
- submit the form.
That is all, now the 'event.cancel()' part in the form's SubmitHandler
is perfectly working.