It's very cool that Microsoft recognized the obvious: the iPhone, not Windows Mobile, is the leading mobile platform, and hence is the right place to release its Seadragon Mobile application.
Unfortunately, Microsoft didn't take the time to ensure it released a stable version of the application. As revealed on support forums on Sunday, Seadragon Mobile is broken. As The Register reports, this isn't the first time that the Microsoft Live Labs team has released a broken application.
Even so, I'm encouraged that Microsoft is interacting with competing platforms at all. It's a sign of a growing maturity in Redmond. It has become more open to open source. It's nice to see it moving its applications beyond Windows, as well.