I developed this TextOCR app as I needed a simple text recognition app that I can easily scan a text image and mail the text on it to myself.
It works great for text image but not for handwriting recognition. You can use it handily to scan your receipts, phone numbers, namecards etc.
To use, first scan the image using the built in camera App in iPhone. Load up the photo and zoom in to the selected area if required. You can then copy the scanned text to other application or mail the scanned text together with the scanned image to your email account.