iPhone is extremely useful for me, I can do anything on it, its great.
However I can tell you for a fact that they cannot run the Unreal engine. These videos are a virtual client, ie a computer does the work and sends the display data to the iPhone. A 3GS has about the minimum specs to run Warcraft 3, certainly not UR3 :P
If you remember the "OMG WoW on iPhone!" discussions a year or so ago, its just the same thing.
And yeah, all those saying iPhone is just wasted extravagance, well not everything is for everyone. You may not use its full potential and have it wasted, but others do. I find the versatility of the touch screen and accelarometer very useful, and it lets me type, play games, use a mouse, etc, and still have a plenty big screen to read and watch. I think its a great system, why have sperate I/O when it can be just one thing ey?
Cant wait for the iTablet, has touch feedback (bumpy buttons, but dynamic, using small vibrations).
@Genki:
You view it as fashion, but I have an iPhone and I dont tell or show people, they really are useful. Mine was cheap and had a great plan, powerful and simple enough that all i carry around is my iphone and wallet, no need for ipods or netbooks like some of my mates. Touch screen is very responsive for me, and is way more dynamic than buttons, and I certainly dont find it gimicy, and now when I use other cellphones I find the keys to be so... wasteful and clumsy, they are more like a gimic that I could do without.
The iPhone has 300 hours battery life, that is very competitive in my experience. As for the memory cards, why use them? iPhones can use bluetooth to wirelessly transfer, I would hazard a guess that you just dont know how. Often ignorance can lead to poor judgment, better to be informed. I can transfer to my PC, laptop, home server, or university server with one swipe of a finger, very useful for large projects n_n
The option to swap batterys I guess would be useful, if you were to swap batterys a lot. I have never needed to, or wanted to, so not really an issue for me n_n
Dont avoid buying one because you 'dont want to be a sheep', people buy them because they are quality, and you get the big brand security. I use a lot of useful tools so i can keep connected and versatile no matter where I am.
In conclusion, I think you should open your mind a bit instead of saying 'I am not a sheep!', and remember to compare the iPhone to a netbook, not a mobile phone.