In a recent article I put forward the idea that Apple may not allow full native applications on the iPhone when the SDK arrives, preferring an extension to the current webkit functions to allow for local data to be stored.

However, while reading up on the various sites about the changes made to firmware 1.1.3 I came across the following...

• SpringBoard no longer needs to be modified in order to show extra applications in the /Applications folder.

• All applications now run as the user 'mobile' instead of as root.

It seems to me that these changes are not necessary for webkit style applets, only fully compiled native applications.

More details on the 1.1.3 update can be found on Nate True's Blog