I realize that the unity remote is just a streamed version of the game, and thus cant be as good as an installed in termes of image-quality. But running the Penelope-demo its so gittery I cant even see the gui-text (big letters). Just checking to see if this is correct behaviour. I use an itouch 2gen, btw.
Yes, apparently this is the case with the remote according to:
http://www.unifycommunity.com/wiki/index.php?title=IPhone_Getting_Started_with_the_UnityRemote
So dont get alarmed if the screen is blurry 
The remote is handy for testing touch interaction control layout and even color contrast, but as for keeping an eye on playback, the game window is the place you view.
B.