Why do people even compare a handheld console to a phone with games? they're two different things... and besides, if I had to pick between the games on android's market or iOS (or whatever it's called) and the games on handhelds like PlayStation Vita or Nintendo 3DS, I'd always pick the handhelds because the games are way better...
If I wanted something to make calls with, send text messages, take pictures, film videos, etc, I'd pick a smartphone.
By the way, I find it hard to play using touch screen only... Buttons are a necessity for me when I want to play something... I hate the lack of feedback, fingers covering the screen, the bad response times of touchscreen compared to buttons, etc. I wish my Galaxy SII had buttons :P