There is ColorCanvas but that isn't better. Right now on ipod touch 2G colorsplash shows in Photos terrible distorted images. I know it's a firmware bug and it use to happen in iPhoto too but apple fixed that finally. What I was really hoping for (might be too complicated for little idevice though) is for ColorSplash to add a magic wand (quicktime movie) like in pixelmator. So it could detect similar color and dragging your finger would enable a wider selection to be made.
Something better in what regard? Same function but better execution? Or another photo app similar polished but with "better" functions?