My thoughts are... the versions of OS X running on the iPhone and the iPod Touch are the same. They basically run on exactly the same hardware (processor etc.). The only differences are bluetooth (maybe), speakers, mic, etc. just like on different macs. So "OS X for Portables" is currently in version 1.1 (on the iPod Touch). OS X 1.1 doesn't "support" the iPhone... but the version that we keep seeing in ads (1.1.1) does. They're the same software... I'd bet my life on it.