500 photos is a lot, but if you plan on making a web gallery to upload photos from your iPhone with, you should be aware of this limitation.
Eventually it would be nice to be able to create web galleries on the iPhone. This way I can be at an event and think “Damn, I forgot to make a gallery!” create the web gallery, start posting to it and post to my blog about it, all from the phone.
mmmmmmmm!