BooksOniPhone.com Does Exactly What it Says
A website called Booksoniphone.com offers a full library of copyright free books available for reading right on your iPhone, from within Safari. Once you visit the site you'll need to create a free account profile, complete with username and password. After logging in you'll be able to browse a fairly substantial library of works by drilling down into categories and authors to find anything that suits your fancy.
The experience isn't thrilling, but does make for a wonderful way to pass the time when you find yourself stuck in dull situations, like office meetings, child berthings, that sort of thing.