BGR is claiming iPhone firmware 2.0 will provide a YouTube plugin for MobileSafari.app. They aren't citing their source, but they're pretty confident in their assertion:
"You heard it here first, people! The latest version of the iPhone 2.0 firmware that was just seeded to developers has a YouTube plugin for MobileSafari.app"
BGR tends to be a solid source, but we cannot confirm this to be true without some more evidence. Nonetheless, if true, YouTube video playback from within Safari will be possible on the iPhone, without launching a separate application for the content. That sure would make surfing the web and viewing content a helluva lot easier; here's hoping BGR is bang on with this one.
Boy Genius also goes onto suggest that this may be indicative of some form of native Flash support, but we just can't raise your hopes like that. It wouldn't be right. [BGR; Thanks, Ted B. Image via Limited Edition iPhone]