iphone gaming coming soon?

There was a comment made on one of the 1up.com podcasts that mobile gaming on the iphone is a very possible reality in the near future. I just bought the 8 gig version a couple of days ago, and the thought of playing a cheap, touch sensitive RPG or Puzzle game has me pretty excited. It kinda sucks that I'm retarded with computers, because I'd love to jailbreak this thing and play NES games. Anyway, Lunar sequel, make it happen. Not on the phone stupid, DS or PSP, and not anything even resembling Dragon Song....wasn't this supposed to be about iPhone gaming?