I couldnt really be bothered to read the whole thread but:
The iPhone is NOT the best gaming device (in my opinion at least) until they release multi-player, either phone to phone or over wifi/3G. the 3G part would be excellent.
but for so many games, it is a lot better to have actually controls, like realistic racing games (like gran turismo for psp, when ever they decide to make it) and shooting...
and although games are a lot cheaper, you can quite easily hack a PSP to get free games, and you can now get cheap 8GB memory sticks as well.
another down side for the iPhone is that it doesnt interact with any other console. the PSP can get all the content on your own PS3 anywhere in the world with a WiFi connection. the DS can probably do somthing interesting as well. and graphics wise its ok, but not astounding. at least from what i have seen from cromag rally, super monkey and that football game.
games that would work very good are the games that are actually out now, platform and specific tilt ones like monkey ball, the labyrinth one and games such as
echochrome would be quite good as well