Hey, this is definitely something I never dreamed stumbling upon. And the best part is not even TechCrunch mentioned this (although Eric did suggest something to this effect).
Basically its a "radio" station for your iPhone. It will stream music to your iPhone, giving users the ability to choose which genre they want to listen to (or better yet, the Beatles if that's all your into).
Here's a video explaining the details.
I came across this while searching the iPhone Web Apps, and users can access on their iPhones by pointing their browser at http://www.FlyTunes.fm/.
Update: Corrected post for grammar.
Update: Engadget posted about this about two months ago. You just can't win.