I've been looking at xbee to the phone as well. Unfortunately, getting a wired serial connection to the phone can be pretty tricky (and quite possibly impossible on non-HTC phones). Having to go bluetooth to xbee just seems wasteful.
No idea yet. The hope is to be able to wireless-ly update waypoints and stream telemetry (video would be awesome too) thru an arduino+xbee to the phone. I'm going for portability.
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I've been looking at xbee to the phone as well. Unfortunately, getting a wired serial connection to the phone can be pretty tricky (and quite possibly impossible on non-HTC phones). Having to go bluetooth to xbee just seems wasteful.