It appears that Apple has finally caved in a bit to their treatment, and will be allowing a handful of 3rd party ‘browsers’,  to set sail in the App Store starting this week.  The fab four include:

Squeaky - a browser that leaves behind no trace of your presence.  It’s history, cache, and bookmark free.

WebMate - Let’s you view sites on different tabs, so you can queue up multiple sites and switch back and forth as you view them independently.

Quick Surf - Takes out the non-sense and gives you a basic page for faster viewing.  (Gets you around waiting for photos to load up)

Edge Browser - Lets you view pages with out taking up the precious space where the address bar is normally planted.
Such as Safari, these apps are based on WebKit, and rather than being full on alternative browsers, they are more like add ons or extensions.  In conclusion it seems that there is little hope for iPhone versions of Firefox, or Opera to be approved.

[Via TheiPhoneBlog]   (Thanks Dani!)