Touting itself as a media management app for iPhone and iPod Touch, PhotoList ($1.99) lets you create photo albums on the iPhone and then fill them with images you can label and rate. You'll be able to further sort images by their name or their star rating, which can be a convenient way to quickly find images in a large collection.
As with any application that requires you to build a media library from scratch, setup takes time, enough of it, in fact, that those with large collections in their iPhone camera roll might want to only use PhotoList for best-of collections. The sorting, rating, and adding photos is intuitive, but we experienced delays after saving a rated and labeled image.
For a $1.99 price tag we'd like to see a few more basic features--a search bar as another way to quickly find titled photos among a sea of pictures, a way to e-mail photos or albums to a friend, and a way to import multiple photos from the camera roll at once. We're told that the next update to PhotoList will get multiple photo importing and the ability to download photos from Facebook and Flickr accounts. Flickr and Facebook integration would definitely increase the app's value as a repository for your favorite photos by album.