1. A contract with AT&T is NOT required at all for owning iPhone games.

2. If you're a dedicated gamer interested in a console then getting the PS3 would be a good choice. But if you have no interest in a game console at the moment and want a versatile mobile device instead, than the iPhone would be a good purchase. It's all about what fits your situation. 

 Much, much more advanced. Motion sensing and a multitouch screen, plus the media features and phone/web browsing. And like I said in my post above, it's much more powerful than most cell phones, capable of actual 3D (to some extent), where all mobile games I've seen look like SNES games.

http://www.iphoneatlas.com/2007/12/03/112-update-boosts-iphones-clock-speed/

That is its cpu speed. They could even overclock it if they want. That is capable of gamecube-xbox graphics if it has a good amount of ram and gpu. It uses cpus similar in architecture to the ds. 

The Apple Pippin was a multimedia platform marketed by Apple Inc. (then Apple Computer Inc.) in the mid 1990s. It was based around a 66-MHz PowerPC 603 processor, a 14.4 kbit/s modem and ran a stripped version of the System 7.5.2. The goal was to create an inexpensive computer aimed mostly at playing CD-based multimedia titles, especially games, but also functioning as a network computer. It featured a 4× CD-ROM drive and a video output that could connect to a standard television monitor. The platform was named for the Newtown Pippin, an apple cultivar, related to the McIntosh apple (which Apple had to spell Macintosh in order to avoid infringement).

Source: http://en.wikipedia.org/wiki/Apple_Pippin

S.K.I.L.L.Z.'s take: I think Apple has the digital music on lock, and based on their foray into video games, I think they aren't as willing as folks think to hop back into the fray again.  

You do know if you want the iphone at $399.99 you need to form a contract with AT&T, if not it would cost signifcantly more.

On topic:

F#ck my PSP, Im getting an 8GB Iphone, Best phone Ive ever "touched".

Don't even TRY to pull that. Totally, 100% different situations. Apple was in serious trouble back then, in a market already dominated by Sony/Nintendo.

Different audiences, different way of entering the market, different competition, different... everything.

A comparison between the Pippen and the iPhone is totally irrelevant. 

Apple is a larger company now than back then. THe difference is alot more people own apple products and trust them so they could sell better than the pippin. Also a significant amount of people have the iphone.

It's actually only a two year contract with AT&T, and they're a pretty good company. I

Will vgchartz track Iphone/ipod touch sales? Since its a video game system similar to that of the psp but with a more advanced touch screen than the DS?

The iphone is surprising me more and more... But it's too expansive for me. I'd rather have a console at that price. I must say though it looks so tempting! XD

*Edit: I'd rather have the Ipod Touch.*