I agree that the iLiad should be a better platform for web browsers, but so far none of the actual implementations on the iLiad have been very useful in practice.
The Kindle browser has two modes: default (simple), and advanced (with some CSS support). Even the "simple" is good enough for many sites. I have screenshots of the feedbook site on the Kindle:
default mode and
advanced mode.
The way the Kindle gets round the lack of a pointing device is to use the its select wheel to identify one "line" (or multi-line segment) of the display, and then bring up all the selectable items in that line to choose from. It relies on the web browser "knowing" what elements could be selected. There probably are web pages where this would not work.