This isn't really that impressive... The iPhone simulator basically runs a copy of iPhone OS built for Intel processors. The real question is... would it actually even RUN on the iPhone? It has to emulate the Intel architecture on the iPhone's ARM CPU whereas it's running natively on the simulator.
That's cool in a weird way, but Jaadu already lets me do that, on an unmodified iPhone--and with good performance! I just operate my iMac remotely via the iPhone, and launch VMWare. (Interface is sluggish unless I'm on my home WiFi--very sluggish on Edge--but things load and process very quickly regardless.)
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