MediaFLO (Forward Link Only) is a one to many - It's one way - think like a radio station. Thus, it solves the problem of network usage - if lots of people want to watch mediaFLO Olympic coverage, that's fine - it doesn't use up any more data sending it to extra users, unlike a 1 to 1 service. In this regard, it's better even than peer 2 peer, which still require data to be sent across the network, just not from one main source.
Broadcast data can include multiple real=time audio and video streams, along with separate non-realtime video and audio "clips".
AT&T are using Qualcomm's MediaFLO mobile TV network, with Verizon already saying they'd use it.
Sprint Nextel also offers a video service, and has tested MediaFLO. Since 3G couldn't handle high volumes of live TV, mediaFLO could be ideal.
An alternative is DVB-H (digital video broadcasting Handheld), which is seen in more European areas, and is afaik going to be in the N96.
Would it go into a future iPhone model? Well, if it isn't spun off, I could see it happening. The service can use high power transmitters, so you don't need one on every street - they can cover up to ~30 square km coverage area.
Whether it would fit with future iPhone innards is another matter. It would be great if BBC, etc could use this - they numbers would rocket. Or ITV - they need the advertising money!
Not sure if they're planning on bumping the QVGA resolution (320 x 240) though. Till then, hammering wifi and using the net I guess.
XGames, Wimbledon, Olympics, Comedy Central...
We'll see I guess.