Tiny Wings is a neat little game, keep a bird with tiny wings aloft as long as possible. Nice art.
Crush the Castle is a fun Angry Birds-like game that was around before Angry Birds.
Civilization Revolution is an excellent strategy game. I’d rather play it on an iPad, but it works on iPod.
Siegecraft is a 3D tossing defense game (catapaults and ballista) with great graphics.
Any games like Professor Layton? Or Braid?
I adore Braid and Professory Layton games.
You Don’t Know Jack is a great trivia/pop culture game.
for nostalgia:
Army of Darkness HD - sort of a side scrolling DOTA tower defence game.
Radiant HD - retro-style space shooter
Anodia - breakout
I liked the puzzle games in the Boxed In series. There are three games.
I also like the trivia game, Qrank.
I love my itouch, there are some awesome games for it. First, here’s a cool website that I use to keep track of upcoming ipod games:
http://toucharcade.com/
They do short previews and reviews of itouch/ipad games, and they list price drops, freebies, and holiday sales too. It’s a good site.
Now for some games. I don’t remember off the top of my head which ones cost what, but most of them should be free or a buck or two:
Temple Run - I don’t usually like the “endless runner” type of game, but this one is a blast and its very well done.
Frisbee Forever - Very cool game where you steer a frisbee around obstacles and through hoops. It should be free, and you get quite a lot of game.
Abduction - Control a flying saucer and beam up humans and cows. Bit short on levels but a lot of fun.
9mm - I just picked this up for a buck on a halloween sale, and it was a steal.
Backstab - Sort of like assassins creed. An awesome adventure game you will pull out to show off your new device. Little pricey (5 to 7 bucks) but seems to be on sale a lot.
Grand Theft Auto Chinatown Wars - If you have played and liked the GTA games you should pick this up. The top down view reminds me of the first few games of the series before it went 3-d. Usually around $10 on the app store, I’m waiting for a sale to pick it up cheaper (although I’ve heard ten bucks is worth the price).
Celtic Heroes - a MMORPG for the itouch. Haven’t gotten too far into it yet but has been fun so far.
Sim City Deluxe - The classic build your own metropolis and rule it with an iron fist game. Seems fairly well done for the small screen once you get used to it.
Dungeon Hunter
Dungeon Hunter 2 - Isometric action RPG something akin to Diablo. DH2 is bigger better and badder, but the original is worth getting too.
Spider Man - I don’t like movie tie in games but I played the lite (free) version and was impressed enough to pick up the full game during the halloween sale. Very fluid and fun 3d beat em up.
Continuity 2: The Continuation - Yes, it is a stupid name, but this is one of the more original titles I’ve seen in a while. It’s a platform game with minimalist graphics (jump, collect coins, find the key and the exit), but the levels are made of blocks that you can slide around to access new areas. Very original.
Tapper World Tour - A remake of an old arcade game that had you tapping sticks to move up and down bars throwing drinks at patrons. This one has new graphics, tons of different levels and a few new things not in the original arcade game.
Vegas Tower - Just started playing this a few days ago. Build a sort of hotel/mall, with different types of rooms, shops, food places, etc. Pretty cool so far. Requires an internet connection to play. You can visit other people’s towers and complete tasks there for rewards.
Ok thats all I can think of off the top of my head right now (GF is using the pod right now and won’t give it up) but it should help you get started.
Attention, everyone. I just bought Scribblenauts Remix for $.99, marked down temporarily from $4.99.
Worth it, folks.
Plus one on this one. I’m up to Wave 50 and love it.
“Orbital” is big fun.
Thanks for the heads-up! I’ve been thinking about getting this game; I’ve heard a lot of good things about it. Can’t pass it up at that price.
Anyone know a good website or app for tracking the best sale prices? $4 off a $5 game is a great deal.
Anything by Kairosoft. They have simple old-school 2D graphics, repetitive gameplay, and very Japanese subject matter, but they will take over your life. I got Game Dev Story and started playing it, got sucked in, and found myself still playing the damn thing at 4 in the morning.
This. In the app version, I highly recommend adding desired-but-pricey apps to your Wish List - if you don’t see them in the list in the app, go to “More” (lower right), then “Search.” Activate Notifications, and it’ll pop up when something on your list goes on sale. I had Scribblenauts Remix on there. 
If you like SokOban-style puzzles, check out Block Rogue. Terrific little puzzler.
Already mentioned but needs to be said again: Tiny Wings totally fuckin’ rocks.
Also, Bejeweled is pretty much perfect on/for the iPhone.
Look for EA games to go on sale for $.99 around black friday and Christmas. Last year I nabbed the Game of Life and Trivial Pursuit. These are great time waster games for when you are driving long distances (for your passengers!) or when you have to wait a long time at a restaurant.
Love Bejewled and Tetris.
Anyone know if there’s a Brain Age type app/game out there? Not that my iPod does wi-fi anymore but hopefully I get an iPhone for christmas. 
Anyone play Chaos Rings? It’s a JRPG that has good reviews.
I’m waiting for a Xmas sale. I see that it has gone up and down(thanks to Appshopper).
I’ve been out of the app-buying loop for a while so these are some older games, but they’re still fun.
Tilt To Live - an addicting bullet-hell game with several fun game modes and achievements.
UniWar - Advance Wars style turn-based war strategy game, with 3 Starcraft-like races. It’s pretty fun, although multiplayer gets a bit unbalanced. Damn copters.
Zombie Highway - fun survival game where you drive down the highway and shoot/run over zombies.
Words With Friends - I hate Zynga but this is probably the best Scrabble game. Challenge me to a game if you want (post your name and I’ll invite you) but only if you’re good - I get 350-420 points per game.
Shot Shot Shoot - a simple two player game that never gets old. well worth a dollar.
Brain Challenge? i’ve only tried it a few times but it comes with a variety of tests and tracks your progress with graphs and such.
Playing Wolfenstein RPG right now.
Only 99 cents now and worth every penny. It’s a fun game. If the new Wizardry game would come down in price, I’d pick it up too. Wizardry is still $10. 