Like most "mobile versions" of websites, Google News was simplified for use on devices featuring what Steve Jobs once called "the baby Internet." Sadly, this simplified version also showed up by default on the iPhone, leading to an experience that was, to put it charitably, subpar.
That's all changed now that Google has redesigned the mobile version of Google News for iPhone, Android, and Palm Pre users. The new mobile version is far more feature-rich than the old one and is more consistent in its appearance (i.e., it's almost indistinguishable from the desktop version) compared to the old "mobile-optimized" Google News.
It also includes a handy "Jump to" link which brings up a window that allows you to skip to the news section of your choice, saving your thumbs from severe scroll fatigue.
There's no need to download anything. Simply go to Google News on your iPhone and check out the changes.