This thread was the perfect thing for me to wake up to. It got my blood pumping and my mouth smiling right off the bat. Kudos, fellas!
Seriously, though, the DS is taking handheld gaming further than any other gaming platform ever has. It's selling more than any other gaming system ever could, and it's continuing to pick up pace. And we haven't even seen the DSi's release yet.
The iPhone and iPod Touch can never overthrow the DS. It's literally impossible, because they have much too simplistic controls (as argued before, Nintendo simplified... but there's a point when simplifying goes too far. Kirby: Air Ride, anybody? Yet it's still more complicated than the iPhone's possible controls). It's also literally impossible due to the fact that gaming isn't the mainstream use for those devices - music, video, and phoning are. They WILL not sell as gaming devices - they will sell as music, video, and phone devices that happen to have an extra gaming feature. Especially thanks to their fantastic price-points.
However, if Apple releases an iPhone/iPod Touch-type dedicated-to-gaming device, that's a different story. Still don't think it'll go anywhere in competing with Nintendo, but it'll do a better job than what the iPhone and iPod Touch can do. NOBODY in their right mind can think Apple's devices have a chance - even against the PSP. Conclusion? You're an absolute nutjob.
Final conclusion: Thread is maximum lulz. 4/5 stars. =D