I think they need to work with the author of Geopher Lite so that the advanced features he would like to add could be done sooner. Then the Lite version could hopefully go free and then pay for a Full version for the die hard cachers.
A note on what you were doing, when we started caching with the iPhone 3G. We realized that you can zoom in further when in Satellite mode rather than in Map or Hybrid mode. So far that there are no images, but the GPS dot moved by merely taking a couple of steps. Very good accuracy when the GPS signal is strong.