My solution is not to use an edit box at all for a case where I need to scroll the text, but don't want the user to be able to edit the contents.
I put either a merge field or a normal edit box with browse mode access denied into a popover panel. I size the panel to be very tall, taller than the iPhone screen and tall enough to hold the largest block of text that I might need to read in this one field. When you open the popover on the iPhone, the popover opens and resizes to fit the size of your screen. you can then scroll the popover panel up as needed to read the complete field contents.
You might also consider breaking up the contents of this field into multiple records so that you can use a portal to display the info as the portal can also be scrolled.
Thanks on this Phil and tried it but unfortunately the keyboard still comes up once you touch that field. Urgghhh!
It will not come up if you block access to the field while it is in Browse mode. This is an option that you set in the inspector. You can also insert the field into the popover as a merge field as this also blocks access to the field.