Who knew multitouch is the perfect interface for stitching photos together into panoramas? It is. Plus if the photo you just took doesn't work, toss it out and take another one immediately. A paid version adds even more features.
From The App Developers: PanoLab is the first application to enable photographers to capture and assemble multiframe panoramas and collages directly on the iPhone. PanoLab makes it simple to align photos that you pull from your photo library or capture on the fly. Once you've finished building your panorama, you may save it back to your photo library for viewing, emailing and sharing online.