There's an application Term-VT100 that's what you're looking for - it's there in the installer list.
It works, ok - but what with the iPhone keyboard it's a last-resort emergency capability that's good for simple commands on the path - reboot, killall xxxxx - , that sort of thing. It won't handle ncurses-based applications. But it sort of does what you might need in an emergency while playing golf.
You need a jailbroken phone to install it of course
thanks so much! I had to also install BSD and openSSH from the installer, but now it works
you're right, not exactly convienient with the iPhone keyboard, but if I have no other way to get Internet this could really help in a jam in case of a problem with our servers (ie: reboot, restarting services, blocking ip's, ...)