Google has released a new beta version of their Reader RSS client for iPhone. You can use it by visiting http://www.google.com/reader/i/ from Mobile Safari.
Google first introduced an XHTML version of Reader back in 2006 and released the new 2008 version with many of the same features that are available in their desktop app.
If you've used list view, then it should be familiar to you. Scan the titles for an item that interests you, tap and it expands in place. Starring, sharing, and keeping unread are done in place, so you never have to leave the list view or refresh the page. We think it's a very fast way to power through your reading list.
Like most things from Google, it's still in beta and you won't automatically get re-directed to it (yet), so remember to bookmark it in your desktop Safari and sync bookmarks (http://www.google.com/reader/i/).
Google is requesting feedback on the new version of Reader, so let them know what you think in their discussion group.