I am using Veency (by saurik) which is a VNC Server for the iPhone / iPod touch in order to create documentation and tutorial materials.
If I can get something to appear on my desktop and play through my speakers, I can capyure it and use the screencast as a tutorial or as documentation for a particular native or web application.
So, getting audio from the VNC server is important though I may be able to patch the iPoone audio out to the computer's audio in, I fear too much latency will be a problem.
A related issue is the iphone touch interface. It would be especially nice when I am in "View Only" mode to have a decent representation of the fingerprints that are causing things to happen. This is quite different than having a single cursor moving atop the screen. So, is having one or more "fingerprints" o the screen of the client possible?