I managed to implement this using the Google Maps API API. The performance is excellent on the iPhone 4, reasonable on 3GS, but not very convenient to use on 3G, because it is too slow. It is a bit hacked and far from ideal, but must do its job if you are fine.
<html>
<head>
<meta name='viewport' content='width=320,user-scalable=no'/>
<script src='http://maps.google.com/maps/api/js?sensor=false' type='text/javascript'></script>
</head>
<body onload="new google.maps.StreetViewPanorama(document.getElementById('p'),{position:new google.maps.LatLng(37.77, -122.41)});" style='padding:0px;margin:0px;'>
<div id='p' style='height:100%;width:100%;'></div>
</body>
</html>
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