This is a nice mod right here. You might want to jailbreak your iPhone if only for this one. It's called LiveTime, and it's an app that animates and updates the clock on your SpringBoard, allowing it to display the current time. When you install LiveTime, it will begin to animate your clock icon automatically.

Do note that when you first install LiveTime, it's gonna be an overlay on your stock icon, so you're gonna see the stock time under the animated clock. Installing LiveTime, however, adds a theme to WinterBoard with the title "LiveTime Clock." Go into Winterboard and activate it, then the icon will change so that only the animated clock is shown.

Best part is, this baby is available in Cydia and comes for free!

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More iPhone homebrew:

• iPhone homebrew - quake4iphone update to v0.9.0
• iPhone homebrew - gpSPhone v3.5.0