Javascript will be supported, without that, a lot of website ( i.e., Web 2.0 / Ajax ) won't work, and is apart of webkit anyway.
Did I read somewhere that Flash may be supported in the iPhone? Also that Java apps are not to be supported, but that Javascript will be supported? If it doesn't support both flash and javascript then fogetaboutit.
Anyway your points are well taken - my big question is can you zoom in like you can with the iPhone. It seems to me, in usability, that iPhone web surfing rocks, but again i haven't the experience with the iPhone or for that matter even surfing the web with a smart phone - it would have to be a killer implementation on a small screen (plus wifi) to make it worth my while - from the keynote it seemed that apple was able to pull that off.