D.K.
My kids LOVE my DROID!!! hahahahahaha Droid rules, iPhone drools!!! lol!!! ;)
Anyways, now that I got that out of my system, I don't know if the iPhone app market has something like this, but I have a droid app that lets you choose from a list, set a timer for a few seconds then put the phone in your pocket and walk up to someone. When the timer goes off it makes whatever fart sound you chose and the person thinks you did it. I don't get it, but my boys think it's riotously funny (so does my hubby, BTW). They entertain themselves for HOURS with this one app. They even practice their acting to try to achieve full verisimilitude. I know it's gross and probably won't work for you since your child is not of the male-endlessly-amused-by-bathroom-humor persuasion, but don't overlook the quirky little apps that you can find in odd places. Some of them turn out to be real hits.
BTW, my kids also like:
Droid Says (Simon Says, the old four color electronic game we all remember from when we were kids)
The Magic 8 Ball
The toddler lock which plays wind chime sounds as you use your finger to just scribble on the screen
Abduction (it's a game about a jumping cow that has to rescue it's herd-mates from being abducted by aliens and it has a kids setting to make it less frustrating)
And many others.
Maybe you could find some like this somewhere on the iPhone market. I truly don't know what's out there for the iPhone.