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You'll have to jailbreak and download a paid app off Cydia for that.

However docking your iPhone, with good lighting and a decent camera on a tripod works just as well if not better. Most prominent YouTubers use this method because you can see what their fingers are doing on the screen as well.
 
Most prominent YouTubers use this method because you can see what their fingers are doing on the screen as well.

Surely an app would be able to implement a visual for touch events in screencasts? They could display touch events like they do in Apple stores (the grey circles).
 
Surely an app would be able to implement a visual for touch events in screencasts?

Sure you're right, but I don't like the idea of just being able to see the screen for some reason. It seems more personal if they're filming the iPhone instead of just being able to see a screen.

But i'm sure there is a jailbreak app that fits your description.
 
There are a variety of video out cables that allow you to do whatever you want with the signal. Or you could go "YouTube" and simply film a TV screen while doing AirPlay with mirroring.
 
Display Recorder on Cydia

Sure you're right, but I don't like the idea of just being able to see the screen for some reason. It seems more personal if they're filming the iPhone instead of just being able to see a screen.

I hear you, however there are certain things, like app reviews, that I find a little bit rough myself. When you have someone man handling that tiny screen and tapping away, it's difficult to see what's going on sometimes. Like I said, depends on what you are trying to show off, IMO.
 
For a jailbreak-free way of doing it: Reflection will allow you to mirror your iOS device to your Mac, then use the QuickTime screen recording feature to record that region of the screen. It is how The Verge does their videos.

Here's a quick example I recorded:
 
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