If you lust after Dragon Dictation [iTunes link] and Dragon Search [iTunes link] and own an iPod touch, your prayers have been answered. Nuance, the creator of both apps, now has updated versions of the free apps that allow 2nd and 3rd generation iPod touch devices to dictate and search all they want. Of course, you'll need a microphone if you don't use the Apple-included headset/mic.
iPod touch users were sorely disappointed when the Dragon apps came out last month, but they should be happy now. In addition to the iPod touch support, the new version of Dragon Dictation has an enhanced UI, and now the app can figure out that you are done dictating when there is silence. This is configured on the iPhone settings menu, rather than in the Dictation app itself. There is also an opt-out button if you don't want the app to send your list of contacts to the Nuance server for enhanced recognition. Dragon Search also has an updated UI and sports some bug fixes.
I think the major complaint against the Dictation app is the 20-second limit on length of the audio clip that will be processed into text. That may be to keep the bandwidth to the Nuance servers low, but I think it is the only real weakness the app has.
I think it's likely we'll see more updates of these apps with extended features. The apps are free for now, but Nuance has said they may not be free forever, so if you crave an app to send a quick email or text, or search the web using only your voice, best to get off the dime and download these puppies.