Amazon wasn't just teasing you whiners who blabbed on about how you'd rather just read ebooks on your iPhone: The iPhone and iPod Touch app has arrived.
The free program brings several of the Kindle's functions to the iPod and iPhone's much smaller, non-E-Ink screen, including the same electronic books, magazines and newspapers that Kindle owners can buy, and the ability to change text size, add bookmarks, note and highlight stuff. From what we can see at first glance of the app itself, there's no dictionary or search.
If you already have both a Kindle and an iPhone, Amazon's program syncs the two so that you can keep your bookmarks on both devices. Immediately after loading up the app, this worked exactly as billed, and the page we're on in the Kindle 2 showed on the iPhone.
While my first thought was "Jesus (not Diaz), Amazon's bent on cannibalizing itself," I guess the move kind of makes sense. People who want E-Ink will still buy the Kindle 2 (reviewed here), but perhaps this will steer people away from the other multitudinous, less complete iTunes ebook options. [iTunes Link to Amazon Kindle App]