While I agree that the phone is capable of some incredible performance, personally I simply cannot get past the lack of hard buttons. I can't play most games with just the screen, and it looks to me like playing an FPS would be torture for me (if I could even stand looking at it).

Don't get me wrong, this isn't an iPhone thing for me, it's a thing with all slate phones. I have an SNES emulator on my Nexus one that is more than capable of playing any game from my SNES days, but I can't stand controlling them. Granted, those games weren't designed for this input method, but the ones that are don't feel good to me either.

And don't get me started on accelerometer-based games. Not for me, thanks...