The more applications that come out, the more you respect the iPhone. The iPhone/iTouch comes with a physics simulator. That means that you can get some really nice games/applications to run on the gadget! Here is a recent one called iSteam.
Your phone can now do much more…turn your device into a foggy surface just like a mirror after a hot shower or as your window on a winter day. iSteam exploits all the features of your device (accelerometer, multitouch, microphone, speakers) like never before, for an astonishingly realistic experience! Blow on your mic to haze the screen, use your fingers to write messages and draw just like you would on your mirror after bath. Shake your gadget to clear the screen and start over.
Here is a preview on this cool application: