The developers have said that PicPosterous was specifically designed to replace the iPhone's camera and to post photos to albums as they are taken. And if that's all you expect of the app, this first version does that fairly well. I have noticed a few areas that I'd like to see improved, though, both in the app specifically and in Posterous generally.
First of all, when wanting to autopost an album that you're creating with the app, it appears that PicPosterous will only post the first uploaded photo to services like Flickr, Picasa and Facebook Photos. It also generally only autoposts when the first photo is uploaded, which may make sense for most services (e.g. Twitter, FriendFeed, etc.) that essentially work with the statusphere, but might not be what you want if posting to a blog, for example. One workaround to this may be to not autopost until you have finished adding photos to your album. However, there doesn't appear to be any way to do this from the app itself, so you have to go to the Posterous web site to autopost from there.
The app also doesn't allow you to enter any "body" text to your album post, but only a title. Again, this is fine when just creating a pure photo album, but even then you might want to add a bit more description. The developers have indicated that they might add a body-text field to the app in a future release.
Finally, there's the whole autopost function generally that isn't as flexible as it could be. When posting by e-mail, you have total control over which (combination of) services you post to, but with both PicPosterous and the Posterous bookmarklet, it's either all or nothing. I've changed some of the settings in my various social networking services now in order to limit duplicate posts to FriendFeed alone when autoposting, and that's acceptable enough to me (given, too, FriendFeed's uncertain future). But it would be much better if you could select which services you autoposted to on a case-by-case basis in PicPosterous (and the bookmarklet).
Of course, when I had heard that a Posterous app was coming for the iPhone, I was hoping for something a little more ambitious. And in particular, I was hoping for a tool that would help me to read and scan/track my subscriptions on my iPhone. Again, the developers say an iPhone-optimized web app is coming, and that would be a start, but I think a lot of people tend to prefer iPhone-native apps to web apps.
Anyway, PicPosterous is a nice minimalist start for an app designed to complement the equally minimalist Posterous service, but sometimes I think the Posterous team go a bit overboard in keeping it simple. Baby steps maybe?