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Most of what I have is free, don't really like the idea of paying for something on a device I'll probably trade in for a new one in two years.

• QRANK - daily quiz game
• SureFire Shot Timer - REALLY works well, just like the real thing
• All the big web sites have good apps - Google, Facebook, The Weather Channel, eBay, craiglist (craigsphone), IMDB (internet movie database), ESPN, wikipedia, YouTube, Dictionary.com, WebMD etc.
• Multiconvert - converts any measurement into another measurement, like feet into meters etc. One of the best free apps available - use this all the time
• US Constitution
• the Bible (the whole thing - in like 27 different languages)
• TX Statutes (paid about $4 for this I think)
• PS Express (Photoshop basics for iPhone photos)
• Photobucket - app links to your online photobucket account
• iHandyLevel (a real functioning level)
• card games - solitaire, freecell, blackjack, Texas Hold 'em
• Pandora - streaming music
• Shazam - play first 5-10 seconds of any song on radio etc and it will recognize it and tell you name of song, artist, album and ask if you want to buy it on iTunes (great for when you hear a song on radio and can't remember the name)
• if you have little ones, "Bugs" and "BubbleFree" are fantastic for keeping hem occupied for a few minutes
• MarkTheSpot - new app a family member just told me about, so I can mark all the spots where AT&T's coverage is AWFUL and it sends a notification to them. Apparently when they get enough gripes about a particular dead zone they send someone out (haven't seen any results yet).
• optical scanners - there are bunch of bar code scanners and the new "QR code" scanner apps - none of them work that great yet. Cool to be able to look up the price of something online while you're in a store, but that's about it. I've tried about 5 of the free ones.
• Realtor.com - I think this app is MUCH better than the less-than-stellar web site - the "show me nearby houses for sale" function is really cool
• iExit - haven't tried this one yet, but downloaded it for our anticipated trip to Kalifornia to my in laws for Christmas It's supposed to tell you what services are available at every interstate freeway exit in real time as you drive (why can't GPS systems do this yet? - my 3-year-old TomTom won't do it)
• Free Wi-Fi - shows you a real time list of free Wi-Fi hotspots near you (not as current as you'd like it to be)