Here are two kewl iPhone appstore official apps for managing your feeds! ‘SyncRss‘ and ‘Fress Rss Reader‘ both are free and good enough utility for the iPhone 2.x.
SyncRss and Free Rss Reader both can cache upto 10 articles per source. Both are good apps and the only difference between them is the Fonts (I am comfortable with both). Feeds can be downloaded and read on the go. So a constant net connection is not required.
Google has optimized its Google Reader for the iPhone, and that gives stiff competition to the AppStore apps. However we prefer using our Free AppStore apps over Google Reader.
Update: We are hearing that SyncRss is now Paid costing $1.99.
Both compatible with iPhone / iPod v2.x
Tested by us on iPhone firmware Ver 2.0.2