A hacker NerveGas says that he can turn his Iphone into a web server and do all sorts of things that Apple would not like.
Apple has so far been working to prevent such third party applications but it seems that this will happen despite what Steve says.
According to Gizmondo, the installations were created using Nightwatch's toolchain including a working Apache installation, Pytho and "a growing binary kit including routing tools, vim, and curl."
The binaries can be found on Iphone web wiki web page, although you have to be a bit of a techie to use them and we wouldn't recommend it.
The same bloke is behind an attempt to liberate the Iphone from its AT&T contract and work on any network. Already it has had some early success. ยต