Can even connect to an Amazon instance or similar. There was a submission a while back about someone who did this for a month (IIRC), but the editor was on the remote machine.

Any free alternatives to iSSH? I don't feel like paying 10$ just to try it out.

This isn't free, but it is a bit cheaper in my opinion it's miles better, http://www.panic.com/blog/2011/04/introducing-prompt-ssh-for...

If I remember correctly, iSSH hasn't been updated for quite some time now. Though I might be wrong.

An upcoming version, that fixes font rendering problems, is mentioned here:

http://groups.google.com/group/issh/msg/f16d119aa00d3570