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Also, I think people will enjoy it on the iPhone and want to upgrade to the real thing.
When I got my Kindle 2, my first inclination was to flick my finger like I do on my Touch. But otherwise, it's a very easy to use device.
Now... how to get affiliate links onto people's iPhones when they're buying book downloads?
For those reasons, I actually see this potentially increasing Kindle device sales, certainly not hurting them.
But I think we agree that the major push is incremental book sales, which a free iphone app will do in spades.
I take it with me all the time on walks.
I do hope to see something done next to make the apparent size issue disappear, like some VR glasses you can hook to your iPhone or whatever. Bringing brain food right up to your face is being conquered. And I think that progress will subsequently incent and focus people to work on that last mile... errr.... last few inches. That'll be fun to see unfolding!
http://www.myvu.com/Crystal-C24.aspx
and the geeks shall inherit the earth.
But I think the iPhone or Touch could stand on their own - type can be adjusted to five different sizes. Only annoyance is having to turn "pages" frequently. But not such a big deal.