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In my opinion, Weatherbug is the best. It's accurate (at least where I live) and it also displays the temperature in the notification panel if you want it to. If you buy the elite version you also get a widget that shows the weather for the next 3 days. Weatherbug is something I'm constantly using. I suggest you try it out.
I would check out Palmary Weather. It's free from the Android Market and I think it's much better than Weather Channel or Weather Bug. There's no widget for it right now, so I just put the app icon on one of my Droid's screens.
I prefer the weather channel app/widget. i tried all the ones listed above and personally still like the weather channel. the selling point for me is the widget and the 10 day forecast, but still just my personal preference.