Like a lot of people who have reviewed and used this application, you have missed the main feature and what makes this application extremely useful - it offers "Google suggestions" as you type!  If you aren't famliar with suggest, google "suggest" and go to the first link.
For example, if I wanted to Google "statue of liberty", instead of typing the whole thing, I can just type "stat" down the bottom will be top queries that users type with these letters (in this case I see "state-of-origin, static major and statue of liberty".  You can then just click on "statue of liberty" and it will fill in the rest for you.
This is extremely useful as the suggestions are almost always exactly what you are looking for - especially for longer and more complicated words which can be a pain to type on the iPhone, this saves a lot of time and is why this is my main application when it comes to searching online.
This together with the fact it shows Wikipedia entries, searches your phonebook and can search for restaurants in and around your area makes it a fantastic app in my eyes.
One last trick, if you want to search within a site specifically, you can do the following (say I want to search for "iphone" on "lifehacker.com"):
  -type "lif" it should show "lifehacker.com" instantly as a result
  -hold your finger down on the "lifehacker.com" result until it shows as a prefix in the search area
  -type "i" (yes thats all you need!) and select "iphone" from the first suggestion
  -select the first option "Search lifehacker.com for iphone"
With only a few key presses and typing only 4 letters in total you have searched a website for a phase.

I totally agree with the AppVee review. This product offers nothing above the iPhone web interface and removes some nice features. I haven't deleted it yet, but I never use it and have moved it to the last app page reserved for apps I no longer use.