It's hilarious to read all the Nintendo fanboys foaming at the mouth here. "Serious gamers won't choose an iPad/iPhone/iPod touch over a DS/Wii" etc.
Well duh. The problem that all you dimwits seems to conveniently ignore is that Nintendo, ever since the DS, has been making crap loads of money from the non-gamers, the casual gamers, who just want to play Brain Age when they have 3 minutes to waste waiting for the bus or when on the crapper.
iPhone/iPad apps have the potential to take all of those customers away, precisely because they're not hardcore gamers, and if their smartphone could take the place of a single use device like the DS/PSP, they would be more than happy to do so.
This is coming from a former fairly heavy PSP user and someone who also had been contemplating getting a DS for a while... until the App Store happened.
See what you guys always fail to do is to acknowledge that there's this thing called the whole wide world out there that is composed of people very unlike your geeky asses :p