"However I found a really easy workaround for Gmail users: Install the free Google app from the iPhone App Store and access Gmail directly through the Google app instead of using Apple's email client. Voila! Gmail via Google app reads .ics attachments, no problem at all.
Can't help you if you're stuck with Ughlook ... er Outlook, except to suggest that you configure your Outlook/Exchange server to redirect your incoming messages to your Gmail address like I've done. With luck you'll never have to launch Outlook again, and you won't miss it. I know I haven't missed it in ... let me see, five years and counting."
Adding to that, as long as you are using software V 3.0 or higher you can set up Gmail as an IMAP account (instructions can be found in GMail for doing this), that gives you better push to the iPhone and makes the GMail through the iPhone app better, but still not as good as the google app that uses safari to view GMail in the mobile web version.
A big addition is to set up google calendar as a CalDAV accound in your iPod/phone. By doing that the calendar on your phone/pod will automatically sync through the web with your google calendar. If you have the settings set right in google calendar, all meeting notices sent to your GMail will populate your Google calendar, and you can set it to give you reminders even if you haven't accepted the invite yet. Also, you can view the ics in the apple calendar just like in outlook, etc.
Still, it seems funny that you have to use google to get a function that the iPod/phone should already have.
Now, about that flash player....