At the moment the only ways of interfacing with an iPhone/iTouch/(and I guess we can add iPad) are via WiFI, Bluetooth, or Serial.
Serial - iP*d serial control from Arduino is shaky at best, mostly because of Apple's past refusal to open up the protocol. They recently have made small concessions in this area, and with the iPad release I expect them to open up the serial port quite a bit more. Except in cases where timing is absolutely critical (eg. rhythm performance) most people prefer wireless.
Bluetooth - Somewhat better supported by Apple than serial. This is what I've been using for most projects thus far,
WiFi - SDK support for WiFi is really well supported. So if I could use WiFi for everything I would. Problem is that you normally need an intermediary network - fine for installations, but a huge pain for musicians wanting to use their iPhone/iTouch as a arduino-controllable sound source. The WiShield's ad-hoc networking solves this dilemma, and also opens up so many more possibilities (controlling the audience's iPhones via a single arduino). The only missing piece of the puzzle is OSC support.
