Brain Tutor 3D (search for it in the app store) is a great example of how the iPhone / Touch can be used as a teaching tool.
This free application lets you explore the brain. Select the structure in the brain you want to view. A description of the structure appears. You can then view a rotatable 3D model of the left or right hemisphere of the brain with the structure highlighted.
But it doesn't stop there. Select the "head" icon and you can see a 3D head. Selecting options lets you rotate the head and position it on your screen. But the best option is the "cut away" view. Select that, then slide your thumb across the screen. This will take you layer by layer through the brain using MRI scans which I assume came from the "Visible Human Project". You can select cross sections from front to back, side to side, or top to bottom.
Not only is this educational, but it makes excellent use of the iPhone / Touch user interface.