It was surprisingly hard to find out about this iPhone Calendar.app limitation.

An Apple discussion forum post by Everett Marshall was the only source I found:

http://discussions.apple.com/thread.jspa?messageID=7935089

To address your specific issue, the ENTIRE note is actually on the phone. You just can't see it. What you can do is select 'Edit' for the note in question. Then touch the Note to enter Edit mode. The entire note is there.

I guess someone at Apple has decided if 140 characters is good enough for Twitter, 1,500 characters is more than enough for an iPhone user's Note field.
I think Apple should fix it. This is basic stuff. Oh...And while they're at it why not make phone numbers clickable in the note field!

Sometimes Apple's decisions make me want to bonk my head on the wall. Palm did better than this 10 years ago!

The best way to get Apple's attention on this is to submit feedback to http://www.apple.com/feedback/

Hope this helps...!

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