Unfortunately, the above demo is in Japanese, but you can see what kinds of thinking is going into the game. It looks like he's completely revamping the game as a top-down physics-based version of the already very strange PS3 version. We would provide you with some more explanation, but it probably won't make things any clearer: the object of the game is to stretch out a little creature named BOY, and at the end of the level, your stretched length adds up with all the other players of the game online to another creature called GIRL, who is currently reaching out into the solar system. Told you it wouldn't help.
Nevertheless, it's pretty fascinating just to watch the four videos (start here) and see what weirdness transpires in the video -- there are some interesting touchscreen controls, and lots of quick physics on the items bouncing around the iPhone's screen. It's not that great as an actual game preview, but that might not matter much anyway: Takahashi said a while back that whenever this weird monstrosity does release on Apple's handheld, "price-wise might be like free." We can't wait to see it.