I sure hope this service would see its way to the iPhone, but considering the tense relationship between Apple and Google, I think this will be one of the first services to offer a better "Google Experience" in their own devices, leaving the iPhone users out in the cold and having to buy a navigation App in the App Store.
On the other hand, navigation software heavyweights like TomTom, Ndrive and others, might not be too fond of having to compete with a free product offering GPS navigation... though I think that would serve as an incentive to truly differentiate themselves, having to offer a true "value-for-money" to attract customers.
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