LiveSketch is a decent drawing application for the iPhone. There are a few features which could be added to this app like saving multi-drawings at once or drawing over existing pics but over all it's a good app.
The drawing feature is cool, the app very sensitive to touch. You can change colors of the drawing line and color and texture of the background.
Oh My Nose Pic:
Octopus Party:
Heart with Eyes & Feet:
Random Skull Pic:
Have you used the LiveSketch iPhone App?
Links to your LiveSketch Pics?
Do you know a better drawing app for iPhone?