An update, the iPhone has apparently supported AAC+ v1 in the SDK since OS 2.2. One developer posted a detailed how-to:
http://blog.stormyprods.com/2009/10/...phone-sdk.html (looks like the URL is hidden, I guess a mod needs to approve?)
v2 isn't supported, and it only works on real hardware (as opposed to the SDK simulator). You're stuck in mono, but AAC+ streams are already stuck in mono, so the improvement from 22KHz mono to 44KHz mono is a big one.
I've also had strange issues with the shoutcast app behaving unreliably; dying mid-stream but never timing out (just buffering eternally). Also, when it really does time out, it doesn't attempt to reconnect.
As such, here are my suggestions:
1) The timeout be substantially lowered, or have some way to configure it; it takes a very long time to time out even when it does work
2) The app auto-reconnect when connection is lost
3) AAC+ v1 support be added, since it's there in the SDK
4) Allow adding arbitrary shoutcast streams to the favourites
Unfortunately, the app hasn't been updated since June 11th, 2009, so it looks like it might have been abandoned
