It's a shame this wonderful display is being held back by such a poor selection of installed fonts.
I wanted to see what this meant in real-world usage, so I hopped over to Code Style's Top 40 Fonts list of most popular available type options on the Web, updated by surveys earlier this month. Here was the result when I compared the font list displayed on my MacBook (left) to the same list on the iPhone (right)—click for a full-size PNG-format version:
Notice how few fonts actually display as themselves. Of the top ten, only three (Arial, Helvetica, and Verdana) show up correctly. Courier is actually the flimsier Courier New, and everything else defaults to one variant or other of the built-in Helvetica or Arial sans-serif typefaces. Here's a close-up:
Further down the list, some of the choices (Marker Felt, Zapfino) are just bizarre to include, while others (Gill Sans, Futura, the Lucida family, my old fave Palatino) are sadly absent. I'm happy to see Georgia in there, and equally pleased that Comic Sans isn't.
Text looks great on the high-density iPod screen—it's a pity there aren't more interesting fonts to try on it. On the plus side, it's quite possible that Apple or others might be able to install some better ones through future firmware updates or software installations.