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Arstechnica notes that Newsgator has announced an iPhone specific version of their online RSS reader.

The mobile/iPhone version is at http://m.newsgator.com.
The obvious benefit to NewsGator Mobile for iPhone is that if you already use a NewsGator Online account, either online or in conjunction with any of NewsGator's products (like NNW for the Mac or its Windows software), the mobile version will sync up with all of your other RSS habits.
Newsgator is the parent company to NetNewsWire -- a popular RSS reader for the Mac.

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....and the obvious disadvantage is that it's a web app, instead of a app app, so you have to be running safari. Once real apps arrive, I suspect a proper rss reader will be written in short order, with that little 'number of new articles' badge that's so handy.
 
Update!

Well I guess there are more features coming :) Check out what I got from my friend that works for Apple... He says this is the next update! MMS added, a Finder, and some other things that aren't apparent from this main menu pic!
 

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