Actually word of mouth seems to be working best for me - but then lots of my buddies have iPhones.

Usually I think what would be handy to be able to do - say To Do lists, or shopping lists or know the train schedule - and then go look for an app.

As someone without an iPhone, I'll suggest that you AskMeFi (this is just the latest of many AskMeFi posts on the subject - check the iphone app(s) tags for even more).

Recent iPhone-acquirer here.

The only apps I've bought are the BoM weather-radar thingy (which is just a version of something they do on their website, and I knew I'd use it), and UniWar, which I bought on the recommendation of some random Mefite in a recent AskMe.

...so in summary, check out the recs on AskMe, and spend the first while just installing everything that's free, playing with it once, and deleting it.

NB: Do not get the lightsabre thing. I accidentally smashed my friend in the face just as he was drinking his beer. Not pretty. I felt very very bad, and they weren't even my teeth.

(also, there's a zillion "best iphone app" and "best iphone app for" sort of lists all over the net)

(also also: if anyone can tell me what the best ssh client app is, I'd be grateful!)

You press the Buy button without much thought like a good little monkey. Tis the App Store way.

if anyone can tell me what the best ssh client app is, I'd be grateful

TouchTerm doesn't suck. Haven't tried anything else.

I'm thinking the iphone is too complicated for me, and I might be done with it. I think I need to go back to a simpler life without communication or internets or anything. Rubbing two sticks together for fire to burn the meat I kill. Well, I don't have the heart to kill anything, so I guess I'll just starve...

um, I would respectfully disagree with pompomtom - mr lfr and I both have the lightsaber app and it is full of WIN and AWESOME. also: amuses the cats.

There are several sites (AskMeFi would be one) but CultofMac, Lifehacker and Wired have pointed me towards some good ones.

Ones that I use a fair amount: iConverter, TipStar, Flashlight (yes, really!), Google Maps, the alarm/clock functions and the Weather Channel app.

One that really changed my life for the better was the Kindle app, but a lot of people hate the iPhone as an ebook reader. I love it, ymmv.

Ones that I haven't used a ton but when I do I invariably go "holy crap this is awesome!" are the Hotels app and iMovie.

If you use the RTD at all, they have their own iPhone app out.

So does anyone actually buy iPhone apps? Real question. I have a Droid, not an iPhone, but I've never actually loaded anything but the free apps and don't feel like I'm missing anything. I haven't really seen any pay apps that are better than the free ones except maybe games.

One of my friends told me about an app where it will geotag your To Do list and every time you pass by the grocery store or whatever, it will vibrate and remind you. I'm not sure if this is full version of the same app as the one where when he records a voice memo and he hits "Send" someone will send him back a transcription of what he sent.

For the full version? I'd buy that.

So does anyone actually buy iPhone apps?

Yes, they do.

I haven't really seen any pay apps that are better than the free ones except maybe games.

The droid market is much smaller now, and I don't use a droid. But as far as the iPhone there are a ton of wonderful apps that do much more than the free apps do. In fact, I can't think of a single free app on the iphone that is even close to what you can buy.

The only apps I've bought are the BoM weather-radar thingy ...
Bought? I got it for free (or is this not the Australian version you speak of ...?)

I don't buy any (well, haven't yet anyway) and I generally find what I want by asking friends (most staff here at work have iPhones) and browsing the free apps on the App Store thingy on the phone itself. Word-of-mouth seems to be most effective, unless you are looking for something specifically.

Free apps that I have found to be good are:
RK Free
ShopShop
Facebook app
Take Me To My Car
AroundMe
Speed
BOM Radar
Remote
Dual Level
Tides
NoiseMeter
Units
AutoPostcode.

Oddly although I spent $200 on my phone and $30 a month for a data plan, I hesitate at spending even $1 on an app.

Bought? I got it for free

Yeah, the Australian one. Cost me $1.19 or whatever the "one dollar plus extra for being Australian" amount is.

As to the free vs pay thing - I have a limit of one app per week, and I imagine I'm buying one fewer pint to balance it out, so really, it's good for my health to buy iphone apps. *sticks fingers in ears before anyone points out the errors in my thinking*