Digital music service Rhapsody has announced the release of a major update to its streaming music player app for the iPhone platform. Rhapsody 2.0 now allows subscribers to download their favorite Rhapsody playlists for offline listening. Rhapsody playlists can be streamed or downloaded over either a 3G or Wi-Fi connection, and once downloaded can be played through the app even when outside of network coverage. Downloaded songs use the same 64kbps…