Does 1PW for IOS work with apps or just the browser like in OS X? I purchased it thinking that it would work with my banking apps and financial apps. I don't use the browser for accessing these institutions, only the dedicated apps.
I am sorry to say that due to the sandboxing of apps on iOS, Apple does not provide developers with a way to directly interface with other apps. Unless the app has included support for 1Password explicitly, we cannot do anything (like filling) in another app. These sandboxing restrictions also prohibit 1Password from providing browser extensions for mobile browsers. This is why we have 1Browser available within the 1Password app: to allow you to take advantage of 1Password's stored information and filling capabilities.
Currently to log into other apps such as the Facebook native app (or your banking apps), you need to copy and paste from the 1Password app. 1Password makes this easy as you can simply tap on the username or password to copy it. 1Password will then clear out the clipboard within a given time period to ensure that your important information does not stay in the clipboard after you no longer have a need for it. You can check out Apps that love 1Password to see which apps have added 1Password integration into their interface.
I hope this helps, but we're here if you have any further questions.
Some of this might change when iOS 8 arrives, right?
We're really excited for iOS 8, but don't have much to announce yet. You can read some of our initial thoughts on our blog.