That being said, it was really smooth on my iTouch 5G.
The demo HTML5 app also runs in Safari. The problem is that Safari's Nitro JS engine is much faster than the older JS engine used in a UIWebView (I think the restriction is supposedly due to security).
For the moment, native is still the way to go, IMO. But I've always believed that at a certain point iPhones/Androids and their browsers will be powerful and efficient enough to negate any performance drawbacks to HTML 5. I think that point might arrive by the iPhone 6 or so, when developers might feel comfortable dropping support for the iPhone 3GS and equivalent. In fact, many devs are already dropping support for the iPhone 3GS.