Yeah, I'm going to agree with historical fact. Back in middle school, we all thought Pokemon Ruby and Sapphire were awesome. They were! We also thought that the N-Gage was going to be schweet. It wasn't. If the iPod/iPhone is going to try to magically become a game system, it will need more interface than a touch screen to beat out the
DS. That, and some really spectacular developer support. If it all falls down to Square Enix and a few minor companies, then it may have a shot.
I think, if Apple bags SE, reprises Bungie Studios (which, I might remind you, was making games for Apple before anyone even heard of the Xbox AND was working on a
DS version of Halo as recently as a couple years back), and even gets some support from the big EA, I think the iPod/iPhone will have a solid shot at being taken seriously.