South by Southwest (SXSW) 2009 is trendy, twitter-filling, and the source of increasingly social iPhone news releases. What's going on this year?

FaceBook connect comes to the iPhone. Sure, they may just have redesigned their home pages to basically become Twitter with invitations to apps you don't want and events on continents you can't attend, but behind the scenes:

You can now use Facebook Connect on your iPhone in the same way you can for a website. Simply download any application featuring Facebook Connect and log in using your Facebook account from your iPhone. Then, you'll be able to easily find your Facebook friends. They will be able to see the same profile information as they can on the site, controlled by your privacy settings. You can also share what you're doing with your iPhone applications with all of your Facebook friends by publishing stories back to your profile.

Pelago has launched Whrrl 2.0:

an application for the iPhone that enables people to capture and share the moments of their lives, as they happen, as a story. Through location, photos and text updates, users can easily turn everyday life experiences into lasting stories that can be remembered, organized and shared. Each user controls exactly who can view their story, ranging from public to private, and includes the option to broadcast status updates on Facebook and Twitter.

SGN Launched Agency Wars, a game tied into -- you guessed it! -- social networking and Facebook connect!

Agency Wars is capitalizing on the classic spy genre and offeres massively multiplayer game play so you can become the most deadly spy around.

TUAW is also live and on location at SXSW 2009, and have posted up coverage of the iPhone Gaming Panel.