Google now has a search page optimized for the iPhone, which pulls out the ads and doesn't need a resize on the iPhone.

<a href="http://www.google.com/uds/samples/iphone/isearch.html" title="Google for iPhone" target="_blank"><img src="http://www.modmyi.com/images/apps/google.png" border="0" height="336" width="320" /></a>

<a href="http://www.google.com/uds/samples/iphone/isearch.html" title="Google for iPhone" target="_blank">http://www.google.com/uds/samples/iphone/isearch.html