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I just wanted to chime in here with something I don’t think has been mentioned, which I feel is very important:
The limitations of iPhone caching (with OS3 and OS3.1. Hopefully Stoyan updates this for iOS4).
Stoyan Stefanov has some great findings at http://www.phpied.com/iphone-caching/
Some items I quickly gathered:
* total cache is about 1.5MB
* powering off the device still clears all the cache
* consider HTML5 application cache to improve cacheability and provide offline experience
This page is definitely worth a read.