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Big thumbs up for Mendeley. The most important features of Skim (high-lighting, notes), plus bibliography, intensely cross-platform, and in the cloud. I'm using it on an iphone, ipad, mac, and an NMCI Windows XP box (supports proxies). Oh, yeah, it integrates with Zotero.

I use several machines (running Ubuntu), so Mendeley is nice to keep everything synced. Also, it works well for sharing citations with other people.

Even though you can store papers on Mendeley, I actually keep most of them on Dropbox.

Is it better now? I have tested it before but it was too buggy for serious loading (PhD thesis), although I liked very much the interface and features.

The in-application browsing experience is pretty lame on OSX and Windows, but 'open externally' works great.

The iOS app is almost there. Once it has sync like the desktop (right now you have to individually download each!) and supports opening in GoodReader so there's good display and editing, it will be useful. But for now, if you want to do any practical device reading, you'll probably want to pull it down on the desktop and transfer into GoodReader via iTunes.