Randy McMillan sent me information on an example that he has posted this time illustrating the usage of Phonegap and iWebKit.
I have created a short video demoing the example in action:
No knowledge of Objective-C is necessary to create an app using these technologies, and as you can see the look and feel is just like a native application. In the demo the app is running in the simulator as a native app, not in Safari. While action games will suffer a noticeable performance lag, apps that are non-graphically intensive have pretty good performance.
You can download this example here:
The example can be downloaded here: iWebkit/Phonegap
[Update: Sorry Links Removed. Looks like the author has removed the advice, and decided to just forward the links to his about page. Will fix if this gets corrected.]