As we noted earlier, Google has pumped up its interface for the Apple iPhone. It is now faster, more customizable, and supports iGoogle gadgets on the mobile phone. (Official details here). This should help Google see even more mobile traffic from the iPhone than it does already.

More significantly, with iGoogle integration, developers don’t have to wait for Apple to open up the iPhone to third-party apps. They can just create an iGoogle gadget instead. No wonder Google CEO Eric Schmidt recuses himself from iPhone discussions when he goes to Apple board meetings. He’s competing for the real estate om that tiny screen.