I believe that one huge overlooked detail is that your Iphone or Ipod Touch must be jailbroken to do this, correct? Since I have not yet really used my Ipod Touch Kindle reader for downloaded content, it is possible that a directory will be written when I do so. But for now I can't see anything to do with Kindle on my iphonebrowser.
I just downloaded Iphonebrowser and they suggest doing a jailbreak, although the process is not necessarily straightforward.
Apparently, only the most recent, beta version of Iphonebrowser works with Itunes 9 (and this is what I have working together, Iphonebrowser beta version 1.03 and Itunes 9).