Already way overdue.
Given that every PDA platform that came before the iPhone has had this functionality, I'm very surprised (and frustrated) that Apple didn't have this for the iPhone from day one. Contact, Calendar, ToDo, and Notes sync should have been the first thing they did. (Oops... they still don't even have a synchable notes app on the Mac yet!)
Lack of this on the iPhone has been about the biggest frustration for me, and is why I'm still carrying my iPaq in addition to the iPhone. The iPhone platform should be so capable. I hope this stuff is coming from someone soon. I know Pocket Informant is coming, but they're leaving out the Notes sync in the iPhone version. Close, but not the cigar I'm waiting for. Maybe version 2.