Update (December 14, 2008): Version 2.5 is now available in the iTunes store.
The new version of iNewz is now with Apple for review… New features include an offline reading mode which was requested by a few people, complete with a simple bookmark option to tag an article if the summary information from the feed makes it sound as though you’d like to read more.
The offline mode will be used automatically if the application detects that there’s no network available, but it can also be switched on manually so that all articles will display in offline mode. You can then use the Open Page button to get to the full article on the web.
To make offline mode work, there’s also a bulk sync option that will update all the sources you’re subscribed to – can take a while if you have a lot of sources!