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what amazes me is that that demo was thrown together in two weeks, and already it looks better than the DS version of super monkey ball. I bet a normal 6-18 month development time would produce somewhere between high n64 and low/mid Dreamcast level graphics. PSP still has the advantage of dedicated video ram, but the iphone has more general purpose ram and a faster cpu, so it should have better AI and physics, along with more possible on screen enemies and larger levels. Also, the iphone uses flash storage, so games should load instantly. All things considered, I think those advantages outweigh the psp's graphical edge.