And so it begins...http://scitech.blogs.cnn.com/2009/06/25/apple-approves-soft-core-porn-for-iphone/ The devs say it has been pulled because of an overload on their servers, and will be re-released still with nudity.
Why not just download images from the web and save them to your phone or browse the web? If the iPhone is a mini-computer, how many of you porn viewers have applications for viewing it? I think most people just use their browser.