Allow me to state the obvious:
The iPod Touch sucks as a portable gaming device.
No, it's got a very nice display, and the accelerometer lets you do some interesting controls with it, but i have to admit that none of the games i've played on the device have really been all that compelling.
Perhaps my non-transparent thumbs make tapping at exactly the right spot at exactly the right time a bit harder. Perhaps the fact that when my device "sleeps" because i need to suddenly do something else, the game doesn't really stop. Perhaps it's the fact that i'm used to dedicated, offset controls. (Ask anyone who's played a motion controlled driving game while on a bus or in the back of a car what it's like sometime.)
i'm sure that there may be some great game out there that really works fantastic on the iPod Touch. i'm sure it's delightful. i'm also pretty sure that i didn't buy a $60 multi-tool because it had a Phillip's head screwdriver. (Or a pair of pliers, or a knife, or any of the other single items on it.) That's because individually none of those items are fantastic and justify the price of purchase alone. It's the fact that i can have all of them (or reasonable representations of them) bundled together that made that purchase decision for me.
So, no Mr. Jobs, i don't believe that the iPod Touch is the future of portable gaming. i honestly would have preferred having a device that has features like the iPhone, except for the obviously expensive "phone" bits. i was willing to give you money for such a device even though the one i have is still working quite nicely.
(Oh yeah, also calling shenanigans on the whole "A still camera would have made the ipod thicker vs the thin CCD camera" because, you know, nobody every managed to screen-cap an image from a video stream before.)

