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Let's get something straight - any iPod speaker/docking system will work with iPhone to some degree, so it's not like iHome's new iP99 is an entirely revolutionary product. I regularly use my iPhone
with a variety of amplified speakers via the headphone jack and with a few different made for iPod docking systems via the accessory dock. Once in awhile I get some very brief nasty sounding buzzing thanks to the speakers not being shielded against the dreaded "GSM Buzz" but it's really not that big of a deal. Every time I dock my iPhone in a Made for iPod dock, like the Tivoli iSoundbook in my kitchen, it asks me if I want to turn on Airplane Mode to avoid said buzzing. I say no, and I listen to music while I'm cooking, and the world is a happy place save the very occasional bit of buzz.
That being said, GSM Buzz can interfere with your tunes and so "Works with iPhone" speaker systems are required to include shielding against cellular radio-induced static. iHome's new iP99 isn't the only system in the world designed to work with iPhone buzz-free, but it's one of the first to actually ship. iHome's got a reputation for making nice sounding, nice looking, and nicely priced iPod dock/clock radio/sound systems, and at $149 the iP99 looks to be a pretty decent choice for an iPhone-friendly sound system to fit a small room and small budget.
Everyone's favorite airport gadget store Brookstone has a semi-exclusive on the iP99 through the summer, and is currently offering free shipping on the device to anyone willing to pre-order it before the June 1 launch date. Before you pony up that $149, you should also know about the Logic3 i-Station Traveler ($60) and Altec Lansing T612 ($199), both of which are also Works with iPhone speaker docks.