Catching up on blogs and saw this blog posting on BusinessWeek about the new iPhone, announced at the Apple WWDC, and that the real sexy is about using the motion detector and developers kit to build games:

Today’s previews of new, graphically impressive titles which seem to feature sophisticated gameplay go a long way towards substantiating the potential depth of the iPhone as a gaming platform.

The continuing, rapid advance of both hardware and software platforms for mobile computing really do seem to be leading gaming in interesting directions.  It's only a matter of time before a mobile device has as much memory and storage as a console, leaving rich gaming applications limited by other things such as bandwidth (oh, wait, 3G / 3.5G / 4G / WiFi is making that less of an issue too) and screen resolution.  160GB iPod Touch already have 128MB RAM, or 1/4 of the Wii's 512MB Flash, and the 160 GB iPod can store 3 Blu-ray DVDs.  And it's not just about storage: WiMax can deliver almost 100 MB/s; 4G technically 24 MB/s.  An 8x DVD transfers at about 10 MB/s. 

I know I'm oversimplifying the technical requirements here, as well as the interplay between RAM, transfer speeds, chip speeds, as well as firmware and software considerations.  But it's really about this: what will games look like we didn't need local storage at all and it was all available through the cloud?  And at reduced latencies than today's high-end consoles or juiced-up PCs?