Even with the annual release nature of iOS devices it will not over take consoles if they are slightly less powerful then Samaritan. To my knowledge iOS hasn't caught up with PS3 yet graphics wise or memory wise. A console 6x the power of 360 will remain far enough ahead graphically and quality wise for a full generation. An iOS device will not be able to compete with that.
Consumers who still enjoy games will be willing to keep supporting games. Early adopters will get an experience so far ahead of iOS that it looks like a NES. Then if iOS does catch up which is nearly impossible by the time it catches up consoles will be very affordable and be home to more high quality software.
Simply put iOS devices will not replace any of the big three. They have very little to worry about from Apple in the next generation.
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
