TUAW's Daily App: Home 3D
Having all of this functionality on your iPhone or iPad is impressive (and the best home design software costs a lot more than this one -- US$3.99 for the iPhone and $4.99 for the iPad), but Home 3D does it with an impressive interface and a surprising number of features. You can use a color picker and choose from a set of pre-loaded furniture, buy more with in-app purchases, or try creating your own models or even using the iPhone's camera for textures.
It's not perfect -- if you want to do serious home design, you'll probably have to go for something a little more dedicated on the desktop. But just for moving some furniture around, or maybe seeing what a room might look like with a different color of paint, Home 3D does the trick.
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