Zite is probably the most-used app on my iPad. I love the way it crawls hundreds of thousands of news sites for the stories I am going to find interesting. It's a bit like Pandora for news, and I can give any story a thumbs up or thumbs down while the app constantly tunes the news choices it brings to me.
iPhone owners, your day has come. Zite is now a universal app, and it is terrific. If you signed up for a Zite account on your iPad, your preferred topics will appear on the iPhone version when you log in. If you're a new user, Zite will ask for for subjects you're interested in, and you're good to go.
I've been using an advance build of Zite for a few days and I can say the GUI for the iPhone version uses screen space very well. Stories scale nicely to the iPhone screen, and navigation is obvious from the get-go.
There is one feature that has yet to be added that I think is important. I can't control the order of the topic list, it's just alphabetical. I'd like to re-order that list in a way that makes sense to me, based on my interest in a given category. For an app that is so highly personal, it seems like a big omission.
Beyond that, I think Zite is a must have for news followers. Flipboard is also an app I like, and it has just appeared this week in an iPhone incarnation, Still, the on screen presentation and ease of use of Zite makes it my favorite news discovery app. It's free, and I suggest you download it and see if you agree.