Netflix released the official Netflix app for the iPhone and iPod Touch and it's available for free from the App store. Unlike the iPad app which is more like a version the Netflix website, the Netflix iPhone app is a true iPhone application. The simple user interface includes Home (with recommendations), Genres, Search, and your Instant Queue.
Streaming over WIFI was fast, and once the movie was loaded I could quickly fast-forward through the movie. The quality was excellent, especially on the iPhone 4 with the "retina" display.
You can watch movies using 3G, but it's slower to load and on my initial testing the movie started and stopped, even with an AT&T Microcell. If you're watching movies on the iPhone with a limited data plan, be sure to monitor your 3G movie watching so you don't incur any overage charges.
Reader Ben reports that the Netflix app will work with the 1st generation iPod Touch, but that you'll need an external volume control (like the one on some headphones) to control the volume.
If you're trying to log out of the application you'll have to scroll down to the bottom of your home page to find the "Sign Out" button.
What are your first impressions of the Netflix app for the iPhone?
Thanks to Matt, Andyg8180, Victoria, Chad, and everyone else for sending this in.