Hello All,
I was looking around and it seems CrossWire has Ipod Touch and Iphone support, but as of yet it does not support any of the older Ipods or media devices. (Lowest level is J2ME's gobible) The code is written so that it is easy to port and it provides a wealthy repo of bibles, commentaries, etc. to access.
Read more:
http://www.crosswire.org/sword/develop/I'm sure you could also get some support from the devs there if you decided to create such an application since they are looking to port it to as many platforms as possible.

Their IRC channel is #sword on the same network as #rockbox.
I'd like to be able to read religious books from the Ipod Nano 2nd Gen with a simple interface that allows searching and selection by chapter/verse. If anyone else thinks this is a good idea feel free to comment.