I opened an account to that site and uploaded a geotagged photo I just took with the iPhone 3G, unfortunately it didn't recognize the geotagging and I still had to "Place the photo" on the map manually on the panoramio site itself.
Also, there's an app in the app store called
NearPics that let's you view the panoramio mapped photos on your iPhone, but unfortunately doesn't let you upload geotagged photos directly from your iPhone to panoramio. This does seem like a pretty glaring omission from all of these companies making these photo apps; especially surprising that Google hasn't made one since they own panoramio (though who knows, maybe they are working on one?)