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We now have two very good eBook programs for the iPhone -- Stanza and Bookshelf. Both let you put books on the iPhone wirelessly, and both work. Bookshelf still lacks the ability to navigate -- something Stanza has. I compared the iPhone to my large-screen Clie, on which I have read many long novels, and found it is better (the resolution is higher, and the print doesn't look jagged). Everything is habit. If you get used to reading on the iPhone, you'll like it. At least that was my experience. Imagine how many books you could carry on the 16gb model. Thousands. And they're always there. I hate the Kindle.
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