That said, I think there's an android app I saw recently on the market that does this. I'll install it later and see how closely it compares to the features mentioned.
After an initial download, and about 10 minutes worth of testing, I have concluded that the Android Market "Shopping List" app sucks. It's a decent first attempt at a shopping list app, but it has (basically) two features -- add items to the list, and check items as done. The checking of items as done doesn't throw them to the bottom of the list or do anything other than put a check next to them.
