Since day 1 of the iPhone’s release to the public people complained about the built in Notes application. While, I too would like to see more functionality I believe that many have forgotten the point of note taking in general.
In terms of pen and paper; notes are usually quick thoughts or tidbits of information written on any scrap of paper found for quick memorization. Once done and your back to your office, home or where ever that information is needed you either put it to use and discard the written information or you add it to a more comprehensive set of information or instructions in a notebook, folder, etc. for later reference. This method I believe is the intended use of the iPhone’s Notes application. Cute fonts and folders wasn’t the goal at all. Just merely a way to jot down some information quickly.
If you’re looking for a way to organize your notes into a larger more comprehensive format you should invest in an application like Notebooks for example. This application allows you to create and organize as many “Notebooks” as you like and is loaded with features big and small. It’s one of my personal favorites.
If you use MobileMe you can create folders via any PC (Windows or Mac) but it can feel a little clunky since you can’t do the same from the iPhone. In any case that’s my little tidbit for today. Use the Notes apps for quick information gathering and a more comprehensive notes app for storing more permanent or consistently referenced information.