Another nice to feature is the app now saves your dictated text if you are interrupted by a phone call. This latest version also supports U.K English now, as well as German. The app already supports Spanish, Italian and French.
I've had an advance copy of the app for a week, and I can confirm it works as advertised, although my high school German is a bit rusty so I didn't try that feature.
Someday, I hope, Apple will build complete speech recognition into the iPhone and iPad. If they do, I hope they use the Nuance speech engine, which is very accurate and easy to use. Until then, Dragon Dictation is a must download for use with email, social networking and texting. The app runs on iOS3.1 or later on the iPhone, iPod touch and iPad.