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 in the H.264 format this fall.
"The combination of H.264-encoded videos plus iPhone's built-in Wi-Fi networking, stunning 3.5 inch display, and custom YouTube application with its multi-touch user interface results in the best YouTube experience on any mobile device."
A video demonstration of the YouTube application is available form Apple's iPhone page.