Let me be clear when I say this: that is amazing. Absolutely. I'm so excited that a mobile platform can do that now.

BUT (you knew that was coming): to me, that still looks like a PITA when it comes to controlling it. I suppose I might get used to it after playing with it for a long time, but should I? There are faster control methods out there, it's actually kind of sad that I have to cover up those beautiful graphics with my thumbs!

The only other thing I have to say is that I love the first video because it simultaneously shows what the iPhone does better than anyone - the gaming - and worse than everyone - the horrible, disruptive notifications. I'm amazed that Steve is happy with how those work... I know we talked about the notifications already, how it's difficult to change them quickly, but I'm amazed they aren't even talking about it.
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Matt