Yes, the iPhone is full of battery wasting eye candy... Which raises one of my two criticism of the iPhone.
Battery life is poor... to be fair if you just use it as a Phone and iPod, it has a decent battery life... but as soon as you watch movie, play a game and hit the web... you can easily run the battery dead.
As strange as it sound the iPhone/iPod Touch only allows one application to run at a time (Apple's own apps, SMS, Email, Phone, iPod and Calendar all run in the background, but no others). These are the rules of the SDK, if you violate them, then Apple don't allow you to post on the App Store. Apple have clearly stated this is to ensure that the battery and memory resource are not used accidentally (given how battery hungry it already is, that is a good move)
When you hit the Home button the Application must quit out, Apple do provide the option of saving the program state to the non-volatile memory before quitting, thus the application can return to where the user left off upon restart.
This leads me to my second criticism of the iPhone... Applications are supposed to be able to register with the Apple Push server, so that any notification events could be run "in the background" without using any of the iPhone's battery... it's a great idea and clever solution to the background task problem... Apple promised it in September... and some early Beta's of OS 2.1 had it switched on... but it's now December and they have STILL not rolled it out to the users yet... this is a really lame thing.