The iPhones have Safari - which is one of the best browsers available.
When I browse BP.net with my iPhone, it looks just the same as when I'm on my computer browsing...with Chrome, FireFox, or Safari (on my computer).
All the issues you heard about were hyped up. A majority of iPhone users are NOT experiencing those issues that were headline news. I know, because I'm using my new iPhone trouble free. No antenna issue at all. It's fast, smooth, looks damn good with the hi-res screen, and it has been very reliable for me.
A lot of the people I talk to that have the new iPhone state the same.
It isn't the iPhone that has internet issues. It just depends on the network in your area. In some places, the 3G works flawless and is super fast...in other places, it's crap. Blame that on AT&T.
edit: Also, iPhone does have WiFi built in. Again, it depends on how decent your WiFi network is.
I'm not a fan of AT&T. I feel like I get ripped off every time I open my phone bill. But for me, the abilities of the iPhone make it worth it. I'm a nerd

I can justify it.