The breaking news is that Amazon has bought Lexcycle, creators of the Stanza iPhone app. Readerville offers some comentary. As pointed out in that post, the big questions here are will Stanza continue to be able to read open ebook formats like ePub (unlike both the Kindle app and the Kindle itself)? Will it still be able to buy books from B&N-owned Fictionwise? Or will they cripple it so that it's just a watered-down version of their Kindle app (or perhaps fold some of its features into the Kindle app and scuttle the Stanza app completely)?
Stanza is, in my mind, one of the best things about the iPhone/iPod Touch and may be the best ebook reading software I've ever used. (It beats out my beloved Sony Reader mainly because it supports PRC (Palm Doc) files, though I still use the Sony Reader for its e-ink screen.) I will be very sad if Amazon destroys it, but if they do I suppose it just leaves a void for other companies to fill, in the way that the destruction of Napster allowed the rise of Bittorrent. Time will tell.