Artifice http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=302887284&mt=8&uo=6 Apparently it's free for a limited time, but it's been free since late Jan. of this year.
I have tried a bunch of the recommendations (thank you) and so far the one that really grabbed me (that isnt in the top 100 and thus isnt obvious) was Power Rush. Its exciting and fast paced. Probably too limited to play much of, but a game or two when your by yourself (you'll look like a retard madly tilting the phone) is definitely fun.
Pew Pew: Simple shooter with 3 modes, very addictive. More modes coming too Glypha: A Joust clone that I can't seem to put down.
How come Lux Touch is in the list if lite versions don't count? Lux DLX is the full game. Edit: Hm... just noticed how old the post is. A few of those games aren't free anymore.
Aeroplane Chess (Ludo/Sorry) http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=325304243&mt=8
PewPew. This should be the benchmark for smooth controls in shooters, even on expensive shooter apps. Space Deadbeef Tap Defense Cube Alien Invader (limited time) Cannon Challenge Trace JellyCar Topple Falling Balls - a very simple and funny stick figure (that bleeds) pick-up-and-play game
NeoSameGame. Went free the other day but looks like no one noticed it coz of dropship, tower madness and saucelifter grabbed all the attention. http://appshopper.com/link/neosamegame
It is rated 1 1/2 stars. I didnt read all the reviews, but one noted that obtrusive adds were added to the free version.
#1 FREE Game is now Slingshot Cowboy http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=320287280&mt=8
Backyard Zoo Dancing Teddy http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=326671651&mt=8