Ok, so yes there have been a few posts denying the resolution of iPhone 4. Soneira says Steve-o is lying. Here's an astronomer's take from Phil Plait
http://blogs.discovermagazine.com/badastronomy/2010/06/10/resolving-the-iphone-resolution/
http://blogs.discovermagazine.com/badastronomy/2010/06/10/resolving-the-iphone-resolution/