honestly- a reality check here.
Who is going to edit videos on a tiny iPhone screen? Nobody.
They made the app for iPad just as Keynote and Pages were made for iPad.
Apple then, after the Gizmodo leak, needed to have something new to show at WWDC so they scaled it down for iPhone 4.
In a couple weeks after iPhone 4, they will push it to iPad for $9.99 where it was supposed to be all along.
Right, so you take your HD camera, spend a while downloading the movie to your high powered mac, (at which point you ignore the larger screen, powerful processor, large hard drive and capable video editing software) import into itunes, hook up your ipad, let that download for a couple of hours, and then edit using the good, but comparatively crippled imovie, just because of the touch interface? Sure, I'm certain that's what people wanted all along!
What's the point of having imovie on the ipad when you can't record video on it, and have to connect it to a far better suited machine to get the content from the recorder? Clearly imovie was built for the iphone, for people to edit on the go. If they really want to do serious stuff, they'll use imovie or Final Cut. I am excited though, to shoot and edit an entire HD movie on my iphone!