Chris has already covered the UX issues faced with an inline browser
approach and has also touched on the fact that for desktop and mobile
application that are downloaded and installed the rules are already
different as the the trust model the user employs when interacting
with them.
On the engineering side however, there is no way to keep the parent
application unaware of what the UIWebView is loading regardless of the
security context associated with the url. You're basically going to
have to be willing to trust the software engineer on the iPhone to use
it responsibly. MPOAuth has an iPhone sample app that I'm in the midst
of updating to demonstrate the inline browser authentication and even
leverage the fact that I can watch the url load requests, to intercept
when it's finished and tries to load the callback url to return the
control back to the main application popping the UIWebView off the
view controller stack for what is a much less abrupt UX experience on
the iPhone.
On the desktop you can easily pop the user out to their preferred
browser, but even here I think UX would also be improved by the
ability to do the authentication inline personally.
_Karl