Currently Online 
I don't have a phone that can handle that sort of gaming however I know some people who do. I do feel however that no matter how good phones get it's all about development costs.
If graphics improve then the games become more demanding, instead of 2 or 3 people making a game and selling it for £1, it doesn't matter much to the user, they are only going to be playing it on the bus (or when socialising with friends in the sitting room when they are meant to be watching football :P). If suddenly there is an entire team, the costs will go up so they up the price to maximise profits. The more expensive the game the less likely someone is to buy it. Especially when there is a free or far cheaper fun game to play instead. The companies that make these expensive games go out of business and mobile gaming sticks with it's tried and tested simpler games with simple inputs.
We will ignore the fact that local multiplayer is essentially non-existant on a mobile device.
Hmm, pie.
