I love capturing panoramas on my iPhone and for this, I use Autostitch Panorama. But does anyone know of a "sweep style" App for the iPhone that mimics the technique used in the new compact Sony cameras? This would be a great App to have if it was effective.
This feature is now built in to the new iPhone 5, and is also available on the iPhone 4S (if you have updated to iOS6).
The same feature is also built into Android devices with the (little known) panoramic feature.
Camera > Settings > Shooting Mode > Panorama
Short video here: http://www.youtube.com/watch?v=txwdD11sW1s
There are two apps that are both seem to be well-liked that provide the pan/sweep functionality you desire.
360 Panorama (by Occipital - currently $1.99)
Photosynth (by Microsoft - currently free)
Both apps allow you to look at the phone's screen, pan/sweep the camera to record, and the app will stitch together a panoramic image based on the area you captured.
I was looking for something similar for my Android phone and I came across this in the Google search, maybe this is what you are after?
VideoPano makes panoramic images straight from videos!
There is a new app called You Gotta See This! that seems to be just what you are looking for. However, it is only available for the iPhone 4, because it uses the internal gyroscope to determine the direction so that it can stitch the photo correctly.