MS Mobiles reports that the iPhone will be getting Microsoft's Office through Safari. Conceivably, it'll also work on the iPod Touch (I wonder if it'll work on other web-kit based browsers like Android's browser).
This may be a big step forward in giving the iPhone another feature to make it a more viable mobile platform for business. What's interesting is that this is coming from Microsoft. However, MS Mobiles lamented the fact that web-based Office to the iPhone before Windows Mobile(not sure how they came to that conclusion).
Regardless, any development of this nature is good for everyone.
Another issue to take note is even after iPhone's app store is out, development on web-based applications are still going strong as is evident here. Eventually, Office will likely work on other web-kit browsers, Opera, mobile Firefox, and Window Mobile's browsers.
Right now, no word on when it'll happen.
Source: MS Mobiles
Note: I disagree with MS Mobiles' assessment that Office working on the iPhone is a blow to WM devices. WM devices already have native apps that work very well. In my opinion, it's better than most other mobile platforms. Again, I don't understand how they came to the conclusion that web-based Office is coming going to be available on Windows Mobile.
Another note: Mobile Burn reports a web-kit based browser is coming to Windows Mobile. That may even things up a bit.
Another note note: You can go to Microsoft's info page for more information. There is no indication that web Office isn't coming to IE on Windows Mobile.