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.