With the introduction of an Interface Builder and revised APIs, which debuted in Apple's second beta edition of the iPhone software development kit (SDK) yesterday, developers have a more complete set of tools for putting their code into realistic operation under the included "Aspen" Simulator.
Below is a video demonstration of PhotoBoard, an application that started its life under the "Jailbreak" umbrella, and was then ported to the official SDK. The program presents a grid surface upon which photos from the user library can be laid. The grid can then be navigated, and photos rotated and manipulated. It's essentially akin to Microsoft's Surface in look and feel.