This is a brief comparison of 3.0 vs the 2.x firmware.  2.x made the iPhone and iPod a legitimate device for people who didn't care for an overhyped media player.  3.0 turns the iPhone into a totally new device.  Why?  If the iPhone kept you connected to the world, it does so even better now.  For example, Textfree is a legitimate SMS replacement, now that you are notified at the instant you get an email.  New IMs are shown to you, wherever you are .  And the search and landscape features finally provide adequate flexibility to a virtual keyboard that Steve Jobs claimed was made to be changeable when he announced the iPhone 2 years ago.  I've had an iPhone or iPod touch since their release (an iPhone first, then an iPod touch) and I must say that I am impressed with all of the developments.  The devices have gone from a new gadget to show off to friends to a portable, innovate device that can do almost anything you want it to.

I want everyone's opinion on the best app on the app store.  I wouldn't go ahead and say that my apps are the best (though if you want to check them out search for "wearmaize" on the app store) but I have had my decision made for weeks: Pocket God.  Why?  Here is a quick, brief synopsis on why Pocket God is heads above the rest:
1) Innovation: Pocket God is in no way a typical game.  It's not really a game per se, but instead you're a god who rules over the little pygmies.
2) Fun-ness: Pocket God isn't fun for a very long stretch at a time, but with all of its features it's hard not to open it up every couple of days, just to harpoon some helpless pygmies.
3) Updates: Perhaps the reason this is number 1 on my list is because of the updates.  Every week or so, there are new features, or episodes, and usually major ones.  So, one week a new island with new features was added, and the next week it was an underwater region.  
So, there's my opinion.  If you prefer some other app or game, post a comment and let me know!
My Honorable Mentions: Jaadu VNC, Beejive+IM, MLB.com At Bat 2009.