Daring Fireball has a video rundown of Apple's 'pastry kit' Web app Framework. That includes Mobile Safari's ability to fun fully compliant HTML5 applications with offline database storage. Google uses this for Gmail for example.
It would seem that Apple is preparing to take web apps more seriously, especially as it moves its customers to faster iPhone 3GS hardware. We can attest that the app isn't as smooth as the demo on older hardware.
