Does the iPhone Have Video Out?

Yes, it does. In fact, it pumps out a 480i widescreen picture. RoughlyDrafted's Daniel Dilger has a very thorough writeup of the iPhone and iPod's video-out capabilities, as well as a review of the new Apple composite and component cables that run around $40.

What's cool about the new cables is that they allow you to power the iPhone via a USB dock/wall plug while you are outputting video to your TV. To me, this has some very interesting uses that could be expanded in the future, since your iPhone can essentially be thought of as a DVD disc and DVD player combined, or even a multidisc DVD player, given more memory. Leave the cables plugged into your TV, synch a movie on your iPhone, connect it to your TV (or perhaps more interesting and useful, a friend or relative's), and watch the movie. A businessman could carry the cables and use his iPhone to give a video presentation without the need of toting along a laptop with video out.

I sometimes connect my MacBook to my TV to watch a movie, but unplugging the laptop, replugging it in next to the TV, etc., then having to unplug when I'm finished, etc, is a hassle. Synching my iPhone with a movie and connecting it to the cables already attached to my TV would be much less of a hassle, and cheaper than me also purchasing an Apple TV in addition to my iPhone.