Hi Karen,
I am sorry to hear that you are disappointed, but I hope I can clear things up a bit!
First, the options we can provide in our apps are always limited by the capabilities of the iOS; before iOS5, it was very hard (virtually impossible) to create nested lists or other formats in a WYSIWYG style, it has become a bit better with iOS5, as you will find soon out in our next major update, Notebooks 5.
But we tried to provide other viable options, and you find two of them in Notebooks already now:
- when you create a plain text note in Notebooks, just start a line with "-", as I did here. When you enter your text and tap return you will see that Notebooks continues your list
- to indent a list, just tap the TAB button (on the row of extra keys); to outdent, touch and hold the TAB button
This should make it relatively convenient to type your lists. To make them LOOK GOOD, too, just select "Format Document..." from the action menu; you will get a preview of what that document looks like in formatted HTML; if you like it, tap the button in the top right corner and select "Convert Document". - Whenever you open that note now, you will see it as a formatted note. If you want to edit it, tap it 3 times, or select "Edit" from the action menu.
You find more about that in the manual and in the handbook, just look for "Markdown".
i hope that helps.
Best,
Alfons