WordPress 2.0 has now made it out into the iTunes App Store but I didn’t see it as an update. So I decided to check the WordPress iPhone App Website and it states the following…
A quick note about installation: WordPress for iPhone 2 is a new app, and the previous version won’t automatically update to 2.0. Installing it won’t overwrite any previous version you have installed. When you launch the new app, you’ll immediately see “Version 2.0″ at the bottom of the screen. When you’re no longer using it, you can safely remove the previous version from your device.
So if you want it you’ll have to download WordPress 2.0 manually from the iTunes App Store and then uninstall any previous version you have installed. Not entirely sure why this was done this way as it’s still a FREE app.
So, what’s new in version 2?
- A new, more efficient user interface that makes it faster to switch between comments, posts, and pages.
- Various user interface refinements and bug fixes
- New Comments interface, with Gravatars and the author URL shown in the comment list
- Passwords are now stored in the keychain
- Posts are now automatically saved and restored if network connection is lost during publishing
- Added persistence, so the app re-opens in the blog you last used
- Added an interface for manually entering the XMLRPC endpoint for non-standard setups
- Fixed rotation-related visual glitches
- Fixed errors where malformed XML prevented access to XMLRPC endpoint
- Fixed edge case where local drafts were sometimes not saved
- Fixed the order of photos so that they’re displayed in the order they’re uploaded
Unfortunately as this is a new app you have to re-configure your blogs in it again 
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