Sanwa Supply has a new stylus aimed squarely at Japan's legion of new iPhone 3G users, the PDA-PEN17. The JPY2097 stick has a conductive sponge tip, and is good for any touch or drag operation that you'd normally perform with a finger. (Once again, a free piece of advice to stylus manufacturers: Why not tell customers to buy and hold two pens, chopstick-style, to enable two-finger pinch operations?)
http://www.sanwa.co.jp/news/200807/pda-pen17/index.html (Japanese)
iPhone accessory collection: http://www.sanwa.co.jp/seihin_joho/iphone/index.html