iPhone as Gaming Device?

Our sister blog joystiq has an interesting post on the iPhone's potential as a gaming device. They suggest that the technology (touch screen, accelerometer, etc.) is already there to make for a real portable gaming device. Our man Dan's concerns about the restrictions on user installable software might be a mark against the idea, but after all the iPod already has games and so surely the idea can't have escaped Jobs and Co. What do you think; would you want an iPhone to get your game on?