Lets let all those youtubers show us some more of the potential of this little gem. Below we see Quake3, World of Warcraft and some other engines all running. It is obviously struggling a little with some of them, but hey - its an iPhone. With such a thing in everyones hands and the positional stuff working I can see some great real world links to virtual worlds.
The iPhone can do other tricks, its dumb but I like the visual clarity and immersion the interface gives in examples like this. But remember it can do tv and things like this as well:
oh hell lets have 2 vids on iPhysics as well - love this stuff!!!