Reflexion, $2.99 In this brick breaker, you actually draw the paddle, and recently added is a level editor, and a level pack distribution system!
Give touch breaker a shot, its free. Link: http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=318652146&mt=8
Bricks of Camelot is the most fun one I have played. There's a Lite version: [app]Bricks of Camelot LITE[/app]
3-D Brick Breaker Revolution by Digital Chocolate has been one of my favorites for a long time. Nice 3-D twist on the graphics, great power-ups (and power-downs), good sound, lots of levels. It's currently $2.99. Another great game is Radial 50. This was just released (i think) last week. It's a completely different take on a brick-breaking game. Instead of moving the paddle left and right with the bricks above you, you have a circle of bricks in the center and have to move the paddle anywhere around the circle that the ball bounces. So you literally have 360 degrees of movement. The paddle is moved by moving your thumb or index finger up and down on the right side of the screen BTW. So, on top of the great concept, the game has great graphics and sound FX, plus plenty of levels. Radial 50 is currently $1.99 One thing i should mention about Radial 50, is that the ball can be a little difficult to follow at times, but the dev has already stated on the TA forums that the ball will have a tail and/or glow in the next update.