While i normally find "Linux ported to run on your [nintendo/toaster/foo] stories only academically interesting, i think the thought of Linux running on 1st Gen, 2nd Gen iPhones (and iPod Touch) a particularly awesome thought.
a) it suddenly means all sorts of possibilities for cute intelligent devices all over the house (with cool sensors - once they can be acessed)
b) it means possibly really cheap, really portable *nix (really pretty) in your pocket
c) it means i can take my wifes old iPhone, and have fun with it..
d) it makes android on the iPhone look like an early in the new year prospect!
Check it out: [video of iPhone Linux]