The wildly popular visualized RSS reader for the iPad has been shrunk down for a palm size version on the iPhone.
Their mosaic style of sorting through news isn't quite as compelling as it is on the iPad, and heavy RSS users will scoff at the 20-feed limit, but if you're just a casual RSS-er looking for an attractive way to sift through some image-heavy favorites, this is the way to do it.
From the app developers: The BEST possible way to consume news on your iPhone/iPod! Featured in Apple's "New and noteworthy" and "What's Hot". Pulse is a clean and visual news reader for your iPhone/iPod. It takes in up to 20 news sources that you follow, and creates a visual mosaic of your news. Tap on an article, and you're presented with a cleanly rendered view of the news story.