(written some time ago but never published… not sure why! I bumped into it when preparing another iPhone post to come :-)
Even though it has a full capabilities browser (ie. a browser that can read any webpage, like most “smart”-phone), it still needs a special “web” development to the point that Apple releases some guidelines. As Russell says:
No matter how great a mobile device’s power is and how much resolution it has, we still have to keep the thing in our POCKETS, use it with our FINGERS, and see it with our EYES. This means that there are physical restraints on mobile applications – both normal and web based – which apply no matter what. This is actually why I think the iPhone is so wonderful since it finally proves the point once and for all: Mobile is different.
iPhone might help mobile web development, that’s for the good. For the bad, it would be nice to use standard technology. Apple seems to have created its own subset of CSS to handle graphics on the iPhone.