Are iPhone viable game devices? Check out this demo of a game named Enigmo
http://www.youtube.com/watch?v=t-5gwPbusjU&e
and decide for yourself. Then the next question is - can educational games be built for it? Then look at Enigmo again. Lots of basic physics happening here, so IMO the answer is yes! I also wonder about kinesthetic learners. Is there anything about the way you manipulate the interface on the iPhone that is a plus for these types of learners?
Once again, I have more questions than answers.