iChat is a new application and as expected there are some limitations and known issues. It doesn't support groups, buddy icons and more than four simultaneous conversations. Another issue (which has quite surprised me) is that it works in Firefox and Safari but not in the Internet Explorer.
The only drawback of iChat is that the user data passes through the developer server. While the developer claims that no data is harvested, still it’s of a bit concern to provide your account details.
All in all, this is one of the earliest iPhone Web 2.0 applications and I believe we'll see many others as well.
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