iPhone as Gaming Device?

Our sister blog joystiq has an interesting post on the iPhone's potential as a gaming device. They suggest that the technology (touch screen, accelerometer, etc.) is already there to make for a real portable gaming device. Our man Dan's concer about the restrictio on user i tallable software might be a mark agai t the idea, but after all the iPod already has games and so surely the idea can't have escaped Jo and Co. What do you think; would you want an iPhone to get your game on?