You can watch video on the iPhone iif it's QuickTime, and now, apparently, if it's Silverlight. This is interesting, given the continued absence of Flash, but BetaNews has the explanation:

You'd think Apple would have stood firm against Microsoft at least as aggressively as it has against Adobe, if not more so. How did this happen? We asked Microsoft User Experience Platform Manager Brian Goldfarb last week at PDC 2009, and the answer was a huge surprise...followed by some caveats. But it contained these four amazing words: "We worked with Apple."

There's still a fair amount of business sense up in Redmond, hidden behind the blustering Ballmer...

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