The problem with iframes not getting 100% height is not because they're unwieldy. The problem is that for them to get 100% height they need their parents to have 100% height. If one of the iframe's parents is not 100% tall the iframe won't be able to go beyond that parent's height.
So the best possible solution would be:
html, body, iframe { height: 100%; }
…given the iframe is directly under body. If the iframe has a parent between itself and the body, the iframe will still get the height of its parent. One must explicitly set the height of every parent to 100% as well (if that's what one wants).
Tested in:
Chrome 30, Firefox 24, Safari 6.0.5, Opera 16, IE 7, 8, 9 and 10
PS: I don't mean to be picky but the solution marked as correct doesn't work on Firefox 24 at the time of this writing, but worked on Chrome 30. Haven't tested on other browsers though. I came across the error on Firefox because the page I was testing had very little content... It could be it's my meager markup or the CSS reset altering the output, but if I experienced this error I guess the accepted answer doesn't work in every situation.