Since I have a few friends who have recently gotten iPhones or iPods, I figured I'd toss up a lightning-quick list of applications to consider. I've put them into four groups for easy evaluation. At some point, I may come back and add links to the iTunes store. but probably not, so don't get your hopes up.
Apps I Use Every Single Day
MLB.com At Bat 2009
Games That Are Worth the Money*
Free Apps I Really Thought I'd Use But I Don't
The Best App For Distracting A Crying Toddler, Which I Think You'll Agree Makes It Well Worth A Buck
*Seriously, let's not have any complaining about five dollars for a fun application. You spend that on a hamburger, which I will remind you "disappears" within 36 hours.