This change makes those types of content completely inaccessible to iPhone and iPod Touch users.
Which is funny since Buxfer released their iPhone interface to Hacker News this same day.
Edit:
I'm sure something will change about this, but until then here's a bookmarklet that rewrites iPaper urls to point straight to the original files (take out the line breaks when you make the bookmark):
javascript:function%20revertScribdLinks(a){for(var%20i=0;i<a.length;i++)
{a[i].setAttribute(%22href%22,a[i].getAttribute(%22href%22).replace(
/^.*\.scribd.com.*\?url=(.*)$/,%22$1%22))}}revertScribdLinks(
document.getElementsByTagName(%22a%22));