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Sounds like HandyShopper, a Palm app. I used that for years and also haven't found a good replacement on the iPhone.
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On a lark, I decided to use "handyshopper" as a search term and found the app "iNeedStuff" in the iTunes store. It is compared to HandyShopper in several reviews. I only started using it yesterday, but I like it so far, and it seems to have the features we're looking for. Unfortunately the online sync is not working for me because there's a conflict between it and jailbroken phones. However the entry method on the phone is so good I don't know that I care.