All currently available consoles are competing for consumer dollars and mindshare, whether it be PS3, 360, Wii and/or the WiiU, just like how the average consumer walks into a Walmart, Gamestop, Target, etc... and thinks "Why would I get a Vita or 3DS when I already have games on my iPhone/Android?"
Not everyone has unlimited funds and must make these choices, so no, right now the WiiU is not dominating the competition.
It isn't that when the PS4 and/or 720 arrive the WiiU magically just earned competition. All that will mean is that new competition entered the marketplace.
iPhone = Great gaming device. Don't agree? Who cares, because you're wrong.
Currently playing:
Final Fantasy VI (iOS), Final Fantasy: Record Keeper (iOS) & Dragon Quest V (iOS)

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