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Oh great, now I need an app for every single website I visit. Oh you don't have one for my phone yet? Oh you are never going to support my phone?

Wait, you've stopped using HTML for your own proprietary markup?

Seriously? This is dumb.

It will only be dumb if they try and stay with the limitations of html and current browsers.

If they take advantage of features unique to the iphone I think there is a chance it would be more successful.

What if they gave you a better "offline" search engine than they offer the user thru the browser?

Maybe submitting via your paid app you get a communication channel with "new internet tv newsreaders".

Maybe iphone submitted content gets given priority?

Yes, potentially this development can be looked as a shot in the foot, but I think creativity could make such concepts fantastic and profitable.