If you are interested in easy editing on the iPhone then seek out posts on iPhone video apps. You will find ReelDirector mentioned. I read about it at Inside the Hive and The Apple Blog.
Yes, for $7.99 you can use video editing software on the iPhone. This is a demo by the creator of the software Nexvio.
Which got me to thinking. What does iPhone video look like if you don't have an iPhone and want to view it?
BJSR music video Play on an iPhone and The Behind The Scenes version of making the BJSR video.
Chris Pirillo's Review of the iPhone 3GS using the device.
It almost makes me want to take the plunge. But not really. It is enticing.