While the iPhone may not be ready for business, it doesn't mean you can't take advantage of its big screen and keyboard to get some blogging done. The folks at Movable Type have a new plug-in that makes the blogging tool's interface very finger-friendly, with tabs, and a touch-to-edit function that's a little bit like Facebook's iPhone app. You can create new blog entries and edit old ones, although keep in mind you're still short on copy and paste, so if you're trying to add links from one browser window to the other (an almost necessary part of day-to-day blogging), you're out of luck.
The plug-in is free and open source, meaning you can tweak it to your desire, and implement the work and creations of other community members who find new ways to improve its functionality. If you're a Movable Type user, you can grab the plug-in here.