I browse Google news and Reddit every morning on my iPod and many of the websites that link from them look very poor on the iPod/iPhone. It's really not hard to make a website look good on a small screen but unfortunately mobile web usability is often neglected.
1. BBC Reader (free)
This app downloads and caches the latest headlines from the BBC website from three categories (I have world news, UK and Entertainment for example). What's great for iPod Touch users is that you can download the news when you have internet and read the articles later when you don't. When you click on a link, it takes you to the BBC article page with its inbuilt browser and it is easy to navigate around. The only annoying feature is that it auto refreshes the news, but not very well. A button of some sort to force it to search for new stories would be useful.
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