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I peeked at some of my other apps and, like Niki said, buttons are configured both ways. For me, it makes the most sense for iReal's mode button to indicate which mode you are currently in. And, as for "a simple heading somewhere on the page", I'll have to concur with Bob - there aren't a whole lot of other somewhere's on my tiny iPod screen.
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Many thanks, Niki!! It feels natural now -- to me, at least.
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This is a common UI problem: when a single command button is used as a toggle, that's considered a blooper (see the book GUI Bloopers 2.0, page 65). Users can't tell if the button label indicates the current state or the next state. No matter how which way you label it, some users will be confused. That's why it's considered a blooper. Instead of a single button, use a toggle switch, like the two-position switches in iOS and Android settings. That way no one will be confused.