There is an incredibly rich selection of text editors for IOS. Federico Viticci does a review on his 4 IOS text editor favourites and also has done a review on Byword which only recently been introduced on IOS (IA Writer also deserves an honourable mention). I agree for the most part with Federico’s selections and this comes from experience of trying all of them (except WriteUp) plus many more.
My go to favourites include Writing Kit when doing long form research papers, Byword for general purpose writing with markdown formatting that eventually gets exported as HTML documents, and Simplenote for short notes in my personal text database. One of the great things are that these apps work on both iPad and iPhone (universal), sync with documents on my Macs and are less than $5 each to own. You can’t beat that as a deal if you are at all interested in beautiful mobile writing tools.