Nope. Touchscreen=no substitute for buttons. As anyone who has played the N64 then DS versions of Mario 64 will attest.
This is the kind of thing that would be easy to get excited about but in reality - no.
And illegal roms.
Has no one heard that this is going to happen. Nintendo is working with apple to port some titles to the iphone via itunes. Its not clear yet how the button layout will work, but it is sure there will be a D pad. Its talked about at this
link.
What? Why would they? Apple would have to pay Nintendo a
lot to entice them as developers, since they're already making a fortune on the Virtual Console, Nintendo Wii sales (each one makes them a profit) and the DS.
Why would they make competition for their own hardware?
Nintendo doesn't develop for other hardware for that very reason.
If you're still believing that then I don't know...