SproutCore (the platform MobileMe is created with) does work on MobileSafari on the iPhone. See
here (slide 29)
I don't know why Apple stop people using it. There's no technical reason for that decision.
As far as a basic version of MobileMe goes, there really is no point:
- If on Linux, most systems have Firefox or a Webkit-based browser, and will work.
- If on Windows, you can download
portableFirefox, which doesn't require installation and can be run from a USB key. Internet Explorer is better supported with the latest versions of SproutCore, so Windows users should see support once Apple upgrade.
- If on a Mac, just use Safari.
SproutCore works with low-bandwidth connections much better than a web 1.0 interface would do (see the above slides), so that's also not a reason for downgrading the experience.