Steve said it could be flash enabled when it finally was released. Since Google owns youtube now and they seem to be pretty buddy buddy with Apple, maybe they'll develop something special for the iPhone.
As far as internet usage, I would imagine the browser would function pretty much the same as Safari on a macbook. From the screen shots and videos of web surfing on the iPhone it looks pretty darn cool. No more squished links and images into a small window like my Treo, I think web surfing is what I look forward to the most. Its either going to be really cool, or super annoying trying to zoom in and out and click on links. Only 49 more days til we find out for sure, buts whose counting🙂
