The Gran turismo of the iPhone, Firemints Real Racing 2, One of the best iphone games :D with actuallly a pretty big budget and development time (a little more than 2 million dollars and 18 months),
with 16 players online multiiplayer, a big campaign, customization, 30 licensed cars, tons of control options :D
I think the iPhone/iPodTouch is getting close to becoming a real gaming console.