Yes, I have been spending a LOT of time on my iTouch and really, it is a superb concept. Wolf, meanwhile, has dubbed it HIS computer and much of my time is spent finding really fun apps for him to play on them.
So are the ones I think are best in no particular order:
(Note – fastest way to find these apps – open your iTunes and type the names into the Search field.)
1. Preschool Adventure
This is the one that sealed the deal for me. I looked at it at the Apple Store and thought, this would be a perfect app for Wolf. Aside from being unbelievably cute, it is also very educational. It teaches shapes, colours, body parts, and animals. Must-get for every parent with a child.
2. Peekaboo Barn
Kids love playing peekaboo and this game opens with a red barn where an animal is hidden behind the doors and it makes a sound. Guess what it is. The sweetest part is when the sun sets and everyone goes to sleep. A little girl says, shh…
3. The Little Red Hen
Lovely story book read by a little girl in English, Spanish, and Cantonese. The animated and interactive characters make it a super fun adventure for your child. Wolf adores this app. Looking forward to more from this developer.
4. First Words: Animals (and First Words: Vehicles)
They teach spelling very interactively. Your child can simply pop the letters into the grayed boxes and it is spelt and read out when all are fitted. Cute and fun! Keeps Wolf busy every morning.
5. ABC Animals
This very nice app teaches children how to write the alphabet by tracing it on the iTouch. Both the caps and the small letters. Wolf writes H beautifully now. Working on the rest.
6. Hidden Expedition
Although this game is really more for adults, Wolf took to it like a duck in water. His vocab really increased while playing this find-the-hidden-object game. Worth every penny. I had fun too. 
7. Animatch (and every other matching game)
Animatch is special cos the animals are really cute (says Wolf who adores the cat) and make a sound when clicked. But still, all matching games are fun and educational for kids as they train their memory. Good for reminding Mom where she left her keys.
8. ICDL
ICDL, which is lovely and free, has 4 illustrated stories which you can read to your child. The funnest is definitely Waldo at the Zoo. For some arcane reason, Wolf loves The Three Little Pigs. This is the PG version. I have to water it down for him.
9. Ike the Inventor
This app is amazing. Your child can play inventor and put together a tractor, iron, television, video camera, and many more things from the raw materials hung in the workshop from blueprints of that object. It teaches your child how to read a blueprint and also have fun making things and seeing them work!
10.Wild Animals (and Fruits, and now Puppies)
A fun series of jigsaw puzzles for kids. You can choose between 9, 16, or 25 pieces and you get a yay or nay when the piece is wrong or right. Encouraging and fun for all children. Wolf spent hours playing with these.
11. Match Magic
A regular “draw a line to match two similar objects from 2 vertical rows” app but with a cheerleading team. One of the sweetest little girl’s voices encourages and cheers whenever you make a correct match or an encouraging “it’s okay” or “try again” when a wrong match has been made. Lovely for children learning shapes, numbers, pictures, and colours. One of Wolf’s favourites.
12. iTykes FP (Finger Painting)
We have tried a few and found this one the simplest to use. Wolf has made many drawings proudly captured by Mom with a two button click, saved in the Photo album.
Mephala is a strange and rather interesting 
February 26th, 2009 at 2:11 am
[...] spends more time on it than me. Educational games of course, and here are the best, presenting the Best iPhone Apps for Toddlers. And what about us adults? Ahh, I have not neglected me. Here are the ones I think most [...]
March 17th, 2009 at 5:09 am
Every time i come here I am not dissapointed, nice post
March 19th, 2009 at 2:56 am
[...] Wolf? He’s growing like a weed. 1m tall already. A genius with the iTouch. He spies the new games I download for him in a flash. Last night he discovered a yoga app I downloaded for myself and proceeded to copy its [...]
April 13th, 2009 at 12:41 am
[...] are a ton of great educational games on the iTunes app store for a steal. Some he can play by himself, others like Hidden Everest, he [...]
August 17th, 2009 at 2:56 am
This list is awesome! Thanks! I think the Preschool Adventure was on the demo one I saw in the Apple shop too! Sean loved it.
August 18th, 2009 at 2:57 am
It is great!
Wolf spent ages on it. Then I had to download more… and more…
August 30th, 2009 at 2:52 am
[...] Lights out. Kitten nurses. Play Ranch Rush on iPod Touch. Third time already. Quite bored of it. Play Orions. Wonder if still remember after such a long [...]
September 1st, 2009 at 11:14 pm
My husband just made an iphone app for our daughter Eva (age 3).
Monkey Preschool Lunchbox-
http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=328205875&mt=8
You can preview it online here:
http://thup.com/games.php
September 4th, 2009 at 3:32 am
[...] 1, written in February 2009, can be found on my personal blog Strange Machines, but I feel it is relevant to both blogs, so I will cross-post this [...]
September 4th, 2009 at 3:38 am
[...] 1, written in February 2009, can be found here. Also cross-posted to my tech [...]
September 25th, 2009 at 5:29 pm
Winzki Apps: Sounding pictures for kiddies.
iTunes Links:
“Cute Winzki: http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=331710398&mt=8
“Lite Winzki” (free!): http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=331553563&mt=8
There are more: “Farm Winzki”, “Home Winzki”, “Build Winzki”, …
October 7th, 2009 at 8:58 am
Hi! I just finished my animated storybook, Belindra – Vegetable Delivery.
While reading, you can click on the characters and the story comes to life!
Here is a short YouTube video: http://www.youtube.com/watch?v=BYglV_qhrEg
and here it is in the iTunes App Store:
http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=332123201&mt=8
I hope you like it!
October 11th, 2009 at 1:11 am
theRab: Very cute app. Thanks for sharing.
If I may suggest, do put more pictures of them on the App Store. It is hard to guess what it is without more images or a website where people can check it out.
Morgan: Alas! Your app is not available in the Singapore store. The YouTube video of it was sweet though. Love the veggie message behind it.
November 19th, 2009 at 2:06 pm
We have developed a handful of applications for kids and mainly focusing on education category.
Math Magic: Kids can learn as well as have fun with math. They can practice addition, subtraction, multiplication and divisions. Random problems will be shown to the kids and they need to choose the correct answer
Word Magic: Kids need to choose the missing letters for the picture shown. Best suited for kids from UKG till 2nd standard. http://wordmagic.anusen.com
Math Series: Kids need to identify the missing numbers. The numbers could either be in descending or in ascending orders. http://mathseries.anusen.com
Match Magic: This application is best suited for younger kids < 6 years. They need to match the pictures/colors/count the numbers by identifying and matching them. http://matchmagic.anusen.com
Count Magic: This application is also suited for kids < 6 years. This app helps to kids to learn counting. They need to catch the number shown. As they keep counting, audio voice will help the kids in counting.
Think BIG: This app is kids in 5 to 10 age group. A group of numbers are shown. They need to pick up the largest or smallest number.
All of our games have rewards and stickers and scores built to motivate and encourage the kids.
Please check them out at http://www.anusen.com and videos @ http://www.youtube.com/kidsiphoneapps
April 19th, 2010 at 10:54 pm
we have developed new fun app for kids!
ABC zoo is a teaching and developing iPhone and iPod touch application for your kids. Easy-to-use on a trip or whenever you are out with your children to amuse or keep them busy. A useful and funny app that lets your kid get used to reading. Your kids will learn alphabet while playing.
available here:
http://www.xoxol.net
April 30th, 2010 at 12:23 am
[...] spends more time on it than me. Educational games of course, and here are the best, presenting the Best iPhone Apps for Toddlers. And what about us adults? Ahh, I have not neglected me. Here are the ones I think most [...]
May 2nd, 2010 at 8:11 pm
A great new app for parents with babies. Baby Safe Monitor is a new app that turns your iphone into the ultimate baby monitor with full video/audio anywhere anytime. Unlike all the other apps that either just redirect messages with noise or use local network, this app is the only one you can watch live and even take photos or video of your baby from anywhere in the world. Night vision,everything. You can either use your own compatible camera, lap top or buy the awesome recommended baby safe camera. Very expensive app US$39 but when compared to baby monitors on the market for what it does its GREAT value.
May 10th, 2010 at 2:57 pm
A great list! You should also check out the simple and entertaining game, number sense…http://punflay.com/number-sense.html
Your kid would definitely love it!
May 31st, 2010 at 5:05 am
The App called ABC HD is awesome for toddlers. It works on the iPad, iPod Touch and iPhone.. Here’s the link: http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=373085715&mt=8
June 8th, 2010 at 2:39 pm
Baby explorer is a “fresh-off-the-line” app which has been developed to stimulate the visual and auditory senses, and hand-eye coordination of toddlers. Here’s the link: http://www.punflay.com/baby-explorer-appstore.html
July 19th, 2010 at 4:34 am
Hi all,
Concerning educational and educative games, my kids love the collection “learning is fun” of iphone and ipad games.
All games are there: http://ar-entertainment.net/learning/ and http://ar-entertainment.net/learning/ipad.html
Enjoy!
Herve
February 28th, 2011 at 7:10 pm
Hi,
Wheels on the Bus is cool indeed, my 2yo Natasha was glued to it for weeks. Now her favorite app is Little Ears – cute educational app that teaches sounds. I mean this one — http://itunes.apple.com/us/app/little-ears-sounds-for-toddlers/id406644866?mt=8
March 28th, 2011 at 5:47 pm
[...] are the funnest, most educational apps to date for toddlers and childlike adults since our last review in February [...]
March 28th, 2011 at 5:53 pm
[...] spends more time on it than me. Educational games of course, and here are the best, presenting the Best iPhone Apps for Toddlers. And what about us adults? Ahh, I have not neglected me. Here are the ones I think most [...]
May 20th, 2011 at 5:46 pm
You could also check out Wimmel App Funfair
It is an awesome app for children and the whole family. Explore the funfair and search for animals and people. Once you found a character, tap on it and you will see fabulous animations. You will be surprised what you see.
iTunes: http://itunes.apple.com/us/app/seek-find-book-funfair-high/id437259572?mt=8
Video: http://www.youtube.com/watch?v=k7aOwcROX8M