Yes, servers shrink with size over time, but after reading this post about iPhones being web servers, I’m thinking about sending the following to David Letterman:

And now, the Top Ten Reasons Hosting Companies Should Replace Their Servers with iPhones

#10: At $500 a pop, they’re cheaper than new servers
#9: They come with more standard RAM than most servers
#8: They use less power than servers (just think how many you could cram on a rack!)
#7: They’ve got a multi-hour battery backup soldered right inside – so dispo your UPS’s also
#6: There’s no spinning disk drive to wear out
#5: You can ditch your bandwidth providers and leverage AT&T’s blistering fast EDGE network
#4: The operating system (Mac OS X) is pre-loaded – just rack it up and go
#3: Since you can’t crack it open, the expense of delivering custom builds is gone
#2: There’s a YouTube shortcut icon standard on every one
#1: They just look cool!

</sarcasm>