Yep, the inline images seem to have disabled my mobile browser's magic reflow thing. On the other hand, that suggests that the article should have narrower rows of text even on desktop (95 characters per line is on the high side of recommended widths for legibility; not unreasonable, but suboptimal), and usually I prefer to read desktop sites since zooming is actually a nice way to navigate around content - better than dealing with usually buggy and often limited mobile sites. In the example in the post, I would have much preferred to double tap once to read the text on Cats who Code than to have to scroll all the way down to find awkwardly laid out sidebar content.
I sometimes do go with the regular version of a website on my phone, but generally I prefer a mobile optimized version, less ads, more readable font size, faster loading, etc. Reading HN on a phone isn't that great, I use http://cheeaun.github.com/hnmobile/#/ and added it to my home page. It makes a world of a difference, except I can't comment from the app.