The 3GS already has barebones video trimming tools, but Nexvio's iPhone editing app picks up Apple's slack by adding in titles, basic effects and, most importantly, clip stitching.

Don't get too excited, it's not like you're getting a touch based Final Cut Pro interface or anything. I haven't tried it, but from what I can see ReelDirector seems to approximate the basic functions of iMovie with a pretty slick looking interface.

Now we just have to wait for the inevitable slew of videos proclaiming to be both shot and edited on an iPhone. [iTunes Link via Oh Gizmo! via Wired]