Yes I just looked it up to double check, the gpu is called the  PowerVR MBX 3D graphics co-processor, and John Carmack says iphone is more powerful than psp the link is in my OP.

And no, the psp is more powerful than the psone.

I'm actually enjoying the current atmosphere of iPhone software development; it's very open and anyone can get a SDK to make applications/games.

I didn't actually want an iPhone (company bought), but then I didn't really want an iPod either back in 2001 when they came out (one was given to me) and that was the end of portable CD players and traveling with CDs for me.

Right now, there aren't any real killer game apps, just a lot of homebrewed style apps for specific tasks and purposes in addition to various commercial apps (Skype, stock checker, yelp, GPS, universal translator, voice search, pandora, shazam, unit converter, dictionary, web MD, wiki lite, mobile news, daily finance, etc.).

It's replaced my laptop for mobile use since it covers all the basics I need a computer for on the go. Not bad for handheld pocket computer.

I've been dabbling with the games and right now it's very much in its infancy with a lot of homebrewed style apps with some established developers (Konami, Pop Cap, Namco, EA, etc.) testing the waters. Low risk since development costs really are minimal. But for many independent developers, it's probably their first time making games.

Puzzle games remain my favorite (Bejeweled 2 is probably the best version I've played since it's more suitable for portable play), but it's become pretty obvious that more ambitious titles are being developed like Force Unleashed, Assassin's Creed, Metal Gear Solid, etc.

While it's all been pretty much a nickel and dime affair so far, as far as game purchases go (lots of cheap quick play games), it's actually starting to take away potential sales of DS games for me (the quick play DS games rather than the types that can be played for hours at a time). Plus I just have no reason to carry a portable game console with me anywhere really.

Games that work best on the platform are designed with gesture/motion controls from square one, so old school D-pad style, button masher portable games aren't a good fit (Zombieville is an exception).

Even if you're not a developer/designer, use your imagination. Touch/motion control based input games. That covers a huge amount of possibilities.

Plus, it's necessary to point out that the same people who are quick to downplay touch controls seem to be forgetting the same thing was said about the Nintendo DS and it's emphasis on touch controls. And the Wii with it's motion controls.

Both sources of input being the innovative standouts by Nintendo this generation.

So don't tell me fans of those platforms are now saying they'd rather be using analog sticks and pressing buttons now.

Time will tell, but right now as a development platform, it is exploding faster than any other platform.

I used to have an iPhone, but someone stole it from me. But i dont like it too much. I rather a normal Cel phone and have with me my DS Lite

I have a regular cell phone; I don't carry with me anywhere anymore since it was only for voice calls.

I don't need to carry a music player anywhere either.

I don't need to carry a portable game console (not that I really ever did) everywhere I go.

I still carry the laptop everywhere, but I never actually break it out until I'm at a desk, since most tasks can be done with the iPhone.

For something I didn't want, it's seeing a hell of a lot of use.

Ohh NOW you're concerned with power?! LOL

The video of the plane's movements didn't seem to always match the user's tilting.

It's a demo, the final game might be better.

So how much does the iPhone cost? I perdict $350.

Ipod touch, 8gig 229, 16gig 299, and 32gig 399.

 "Ipod touch"? Can u phone with one? I thought it was a MP3 player.

iPod Touch runs every app/game that the iPhone does. Can be used for Skype calls over WiFi network, but cannot access 3G network (part of the data subscription plan for the iPhone).

It has full network access via WiFi over open/recognized networks.

The only thing it doesn't do is access 3G/Edge network for phone calls/text messaging, hence the iPhone.