The situation is so at odds with Microsoft’s view of the computing universe that Steve Ballmer came up with this cockamamie explanation: “The Internet was designed for the PC. The Internet is not designed for the iPhone. That’s why they’ve got 75,000 applications — they’re all trying to make the Internet look decent on the iPhone.” Pound the table, indeed.
Actually, I'm not entirely sure that he's wrong. I personally use apps on the iPhone not because I want a dedicated app for that thing, but because it's less usable or not available in the browser.
On my computer, 95% of the apps I use live in the browser. On the iPhone, it's the opposite. Maybe Ballmer is on to something...