It lacks a few iPhone features, such as pinch and zoom, but will let you test while developing apps for iPhone (without using your iPhone). I think this is a great piece of software. Even though I have an iPhone, it’s inconvenient to try and view sites on it over and over while testing. It’s much easier to just keep iPhoney open and click refresh.
I tested the site with Digg (digg.com/iphone) and Leaflets (getleaflets.com), and they both worked well. I look forward to testing one of our iPhone optimized sites on iPhoney.