Actually, the "optimized view" of the N800 opera has also very smooth and clever scaling. Not sure if the iPhone has something similar.

One should note that the iPhone has not much more than half of the resolution of the N800. This makes a big difference. Even if the handling, as the Apple demonstration video shows, is very slick, you don't want to scroll forward and backward all the time just to be able to watch some web page. It is very clumsy in the long run.

I can imagine the iPhone is a fine gadget for quick and short internet usage. Like checking (not writing) your mails, check a stock quote or the weather. But I doubt that more sophisticated interaction is really viable. I wouldn't want to do some internet banking with such a small screen.

What people will do with the iphone is: phone , SMS/short mails, listen to music, maybe watch a video or youtube. Not much more I suppose.