It can be used interchangably with alcohol for wound care. In prehospital setting alcohol and peroxide is prefered because they don't stain clothing and there is no allergies to them (biggest problem with iodine). Operating rooms and blood culture obtaining iodine is used while pretty much for everything else alcohol is no 1 choice.

This is an interesting argument about using one versus another:
http://allnurses.com/forums/f8/iv-site-prep-87803.html

Quite honestly it doesnt matter if you use alcohol or iodine but either or is better than peroxide althou much more painful.