It's a sick phone pal. You'll most definitely enjoy it. I can recommend these free apps:
NowPlaying
displays theatres based on your location, as well as showtimes, reviews, links to trailers, etc. Great resource for moviegoers
AroundMe
Uses your location to track a variety of different things in your area, including restaurants, gas stations, banks, malls, coffee shops, etc. Very useful when in a new city/town
Wikipanion
Wikipedia on your iphone, 'nuff said.
Games- I'd recommend Air Hockey, Vegas Pool, HangMan- I bought the Price is Right, which is sweet, but costs $2. iFishing is also sweet, but again costs a bit of coin.
Enjoy!