This makes my green heart happy. Above is a video of the Einstein Newton emulator running on an iPhone 4. Newton OS lives!
Sort of. You'll notice that it's kind of slow for now, though the project's developers say speed will improve. Still, it's a full Newton, with hand writing recognition and everything. They also intend to get it working on the iPod touch and iPad. If you want to get your hands on things right now, the source code is available here