The Google Mobile Blog has the scoop on some amazing changes to Google's Web app for the iPhone (what you see when you visit www.google.com on Apple's device):

I set out to create an application that would preload my favorite Google products and allow me to switch between them instantly. I wanted web results as well as image, local, and news results without having to repeat my search. I wanted to check Gmail and my news feeds in Google Reader without having to load a new page every time. I also wanted Google Suggest to save me time typing queries on the virtual keyboard.

A few weeks (and a few gallons of mint tea) later, I had an improved version which Googlers throughout the company were using on their iPhones (it works great on the iPod Touch too). Now we want to share it with everyone.

Our guiding principles were "fast" and "fluid." We think we've achieved both, thanks to some AJAX magic made possible by the iPhone's Safari browser. To try it out, just go to www.google.com on your iPhone.

Looks awesome to me. Imagine what they'll be able to do when Apple opens up this thing.

New Google Web app for iPhone