USA Today was one of, if not the, first newspaper to go full-color in their print edition. Holding true to that tradition, USA Today has released an iPhone app that is visually appealing and makes great use of images.
While there are other news apps for the iPhone, the USA Today app definitely has some features which make it stand out from the pack. The application has a very Apple-esque look and feel and self-customizes itself to give you your local weather (presumably based off of your GPS/IP address information). Most of the other content is nationally focused, but local content is also available. The application also has a slew of sharing features that let users share stories via email or text message. There is even integration with the Twitterific app to enable users to send a Twitter message with a link to an interesting story.
One thing noticeably missing from the application, which is found in other iPhone news applications, is video.