Free PhotoUpLink for iPhone shares photos directly between devices
No need to wait for the peer to peer support in OS3.0!
PhotoUpLink for iPhone and iPod Touch is a free, peer to peer photo sharing tool with a unique ability to pick multiple photos to send. Just click on each image you want to send across all your albums and they get added to the list to send.
The app is free, so no problem installing it on your friend's device to receive them. Select your photos, touch WiShare and then any device that is also running PhotoUpLink on the same WiFi network will show up, touch the device name and transfer begins automatically.
PhotoUpLink is on the App Store now and includes an FTP feature.