Last year, many developers (including John Carmack) have said that the iPhone's power lies between the DS and the PSP. The PSP is said to be almost as fast as the PS2. This year's iPhone 3GS is about twice as fast as last year's iPhone, according to all reviews and looking at the specs. So it is probably faster than the PSP and about as fast as the PS2. The PS2 being slower than the GameCube and the Wii being 1.5 times as fast as the GameCube the iPhone 3GS is probably half as fast as the Wii.
The problem of course, besides the lack of big budget titles, is that developers are not yet optimizing for the new iPhone 3GS because just 3 mio or so of the 45 mio iPhone/iPod Touch users own the new model.
Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.
