If the above video is real it appears that World of Warcraft is in development to be released on the iPhone via the mobile gaming service Vollee. Vollee is a company dedicated to making PC games playable on 3g mobile devices. Basically how everything reportedly works is an instance of the game is running on a PC somewhere and then compressed and streamed to the iPhone via 3g (or WiFi) allowing a seamless gaming experience through a client side interface altered to make the game more playable via the iPhone.
What helps the validity of this rumor is Vollee has a partnership with Activision | Blizzard, the folks behind WoW.
thanks pete for the tip (and working video link)
thread updated with yet another video link thx JazJon