Oh boy... 

So I guess GTA 3, Chinatown Wars, NOVA, Final Fantasy, Metal Gear, Mass Effect, Order and Chaos and a multitude of 2d & 3d Zelda styles games on iOS don't count because...?

Still sounds like your knowledge of the iOS games library is minimal.

Give it a real try, I am sure you'll find a few surprises.

You also seem like your shooter heavy in your gaming which would of course shape your opinion greatly.

Yup, plus I didn't even mention shadow gun which 100% fits the Gears of War criteria.

I have an ipod touch. Chinatown wars originated on the DS, GTA 3's controls were terrible on touch screen, and it ran terribly. Final Fantasy games are either ports or were the CHaos games or whatever from Square that I didn't play. Nova was terrible imo. I wasn't aware there was a Metal Gear game, havent played mass effect, haven't heard of order and chaos. I don't deny that there are good games on iOS, but they generally aren't as deep or as fun to me as dedicated gaming handhelds, and many gamers do agree with me. 

I denied it for years but one thing has become clear to me.

Iphones are affecting handheld sales. I always said this wasn't true until we started selling Iphones and Ipods. No joke people are litteraly buying them just so their kids can play games on them. And yes I'm serious.

I never though any of that was true and was just the industry fabricating drama but trust me folks its 100% real I'm beginning to see it first hand.

The question we need to ask ourselves is 1) Are the iOS games better? 2) Are they more profitable than traditional console/handheld games and 3) Are console/handhelds still profitable. If 2 is yes and 3 is no, then we will see massive change in the industry. 

Nobody will argue with you on that. (Or I hope they won't...)

There will be at least another generation of dedicated hand helds.  Hell if Nintendo can profit off just 20-50 million sold they would probably still crank them out generations to come.  Sure, Nintendo could just stop making consoles and become a 3rd party developer which some people really want to happen.  However, they are determined to be in the hardware department so they can utilize the system to their preferences.  They have been focused on controls for awhile (which is why they won this generation in home consoles) so I highly doubt they will throw in the towel and start making games with touch only controls for smartphones.  That would be a sad day. 

d pad + buttons > touch for 2d platforming

Free games usually are pretty big...I've yet to pay to download anything off the android market in the entire 3 years I've been on it. There's even games that hit over 100 million downloads like temple run, but really after playing a good hour or two of the game your pretty much done of it. Mobile games don't have the lasting appeal of normal video game console games. It's beyong being "casual" you'd have to almost find another definition of what mobile gaming is.

Mobile gaming is not for the hardcore, people will never buy accesories, or pay monthly fees for a game on there cell phone, let alone play a game for over 100 hours (which I've done several times on my home consoles).

I am sure most of that has already happened.  I put in 400+ hours on Animal Crossing- City Folk (I've known older and younger people that have probably put 1,000 of hours on AC, I know this isn't the best example but this is a game one might not think people play "hardcore").  I am sure there are a decent amount of people that spends countless hours on shitty games like Farmville or games on iOS/Android.  Some people might perfer a game and really love to play it a lot of hours (even games you might think or really do suck).  Everyone has different tastes and could become addicted to any type of game.