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Rhapsody, the online streaming music service, just launched its iPhone and iPod touch app (iTunes link). While there had been some discussion about whether Apple would actually allow this 'iTunes competitor' on the iPhone, the approval process looks to have been relatively smooth for Rhapsody. The app feels very similar to Apple's own iPod app. From within the app, you can search Rhapsody's library of 8 million tracks, surf genres, create playlists, or find new music released this week. Overall, we came away quite impressed after testing the app out for a while, though the $14.99/month subscription fee (after a free 7-day trial) will surely keep some potential users away.