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I recently discovered the free PlainText application whilst searching for a Notes replacement that would enable me to quickly create notes and give me the ability to organise notes into folders. I was also pleasantly surprised to learn that the application supports DropBox syncing too.
Using PlainText is incredibly easy, the application has an uncluttered and clean design that makes it a joy to use. I found the creation, naming, and renaming of new documents and folders trivial, and deletion is easily accomplished by swiping a document or folder name and pressing the Delete button.
Verdict: If you use the Notes application on the iPad or iPhone often, you should get this handy and free utility from the App Store here.
Disclaimer: I am not associated or employed by any company producing software reviewed on this site.