Found another mobile-python hacking gem: The PaperKeyboard project is attempting to use an S60 phone's camera to recognize character input on a printed, paper keyboard. The project includes proof-of-concept code using Python for S60. The author has opened a discussion on the PyS60 boards.
While we're on the subject, the Guardian posted an opinion piece yesterday titled "Python: the full monty for mobile applications" which suggests that Python might be just what the mobile market needs to attract hobbyist hackers to mobile phones.