Apple has announced that despite the iPhone's lack of Flash capabilities, the device will be able to access YouTube content through a partnership and development workaround with Google. The content will stream through an Apple-designed application over either Wi-Fi or EDGE.
An Apple press release says:
"YouTube has begun encoding their videos in the advanced H.264 format, and iPhone will be the first mobile device to use the H.264-encoded videos. Over 10,000 videos will be available on June 29, and YouTube will be adding more each week until their full catalog of videos is available … Read more