I'm sure I've read that Stanza works with the iPhone, though I don't know if the iPhone version reads unprotected Mobipocket, as the Kindle does.
If I had an iPhone or iPod touch in addition to my Kindle, I guess I'd use the Kindle app only for Amazon books and read all my other mobipocket books (MobileRead, Manybooks, Baen, etc) on another app.
It does seem like a shame one can't read all one's books in one app, though. Especially since they're all the same format.
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