because then if the iframe covers the whole screen, it'd be impossible to scroll the document?
This behavior is intuitive, if slightly inconvenient in some cases, which is exactly the trade-off I'd have expected Apple to make. Requiring an unfamiliar multitouch gesture for a common operation strikes me as the kind of "let's do something cool because we can" geekery that got us middle-click-to-paste in X Windows.
I'm curious: what does the iPhone use to scroll an iframe in an iframe? Three fingers?