The Associated Press recently launched an iPhone-friendly web application containing all their news articles in an attractive and convenient format. They join many other web sites to create Mobile Safari editions of their services, and offer some excellent features.
To access the Associated Press iPhone view, visit apnews.com from your iPhone or iPod Touch. The site features categorized headlines, a powerful search tool, local news, categories, and intelligent customization settings. The site fits the iPhone user interface excellently and is probably the best implementation I have seen for a news application.