The distinction has just gone away. People want a fully functioning web browser on their phone, and that's what they'll use. Not some WML stripped down horrible to use thing.
Mobile web is not WML
Mobile web = XHTML
I work for Heysan and we've been seeing a tremendous growth in the last 6 months. Mobile web is for more than 100 million people in the world the main way to experience the internet. In a year or two there will be more people having their first experience of the internet on a phone than on a computer
I agree that more and more people will view the web on a phone, but I disagree about them going to sites built specifically for mobiles.