When searching for an SSH client, I chose the free version of TouchTerm and am generally satisfied with its capability given my basic SSH needs.  You can save connections and recall them, choose to see the touch keyboard behind a translucent terminal window, and utilize a wide variety of other setting including the following (v 2.3):

1. •Text entry: immediate entry or entry using an iPhone buffer, auto-return, auto-scroll to cursor, and allow scrollback
   

2. •Terminal: full screen mode, translucent keyboard, UI transparency, and disable sleep
   

3. •Display: font, font size, and colors
   

4. •Security: save passwords, application locking, managing ssh keys, etc.
   

5. •Advanced settings: persistent connections, text encoding, use SSH1, etc.
   

TouchTerm  does lack certain features that other iPhone SSH apps boast including the ability to zoom the display by pinching and support for multiple simultaneous connections. I’ve read plenty of good things about other SSH apps out there (see my comparison page or search google for iPhone SSH reviews), but for a free alternative, TouchTerm seems to hold its own very well against the competition.

There is also a version of TouchTerm Pro, which boasts such advanced options as a command library, graphical filesystem navigation, and copy-paste.  However, at a price of $14.99 (at the time of this writing), I’ll happily skip the pro version for now.