You can even send in news tips to the AP if you want to give them a first-person account of whatever it is you're seeing. Mark would have found this useful when he was caught in a tornado and almost died yesterday.
Even the Associated Press is making their own iPhone application. It's basically like a news fetching program that knows where you are so it can fetch local newspapers to your phone. Stories are saved on your phone to read offline, and you can flip through photos like Fergie dancing or Chris Rock on the defendant's chair using the iPhone's touch screen. There's even video.