Sounds cool, but I am not into "console-quality" games for the iOS. Really, I think the iPod is good for games meant for it (i.e. Orbital, Skee-Ball, etc).
I got Street Fighter IV some time ago expecting to get a good-as-the-real-thing type game. Instead, I only got a decent game, but it was almost impossible to nail the advanced moves, and I could only unlock one character. One.
Although it sure does sound cool, I don't think iPhone "games" count as pure handheld games.
/mini-rant