iTransmogrify! is a bookmarklet for iPhone which transforms embedded Flash content into direct links to natively supported formats. That means YouTube videos and MP3s can now be played from the iPhone’s Safari web browser with just a few clicks.
Seeing it work is the best explanation:
On an iPhone? Try it now: iTransmogrify! (works in Safari and Firefox too)
Sorry, it took YouTube a long time to re-encode that for iPhone, here’s a baby panda:
To install the bookmarklet, just drag the link to your Safari or Firefox Bookmarks, IE users should right click and choose “Add To Favorites…” After adding the link, sync your iPhone.