The iPhone has the potential to be a Nintendo DS killer. I imagine being able to play games with others on the bus. Are there any plans to make these kinds of interactive multiplayer games that you can play with people within WiFi range (or using 3G).
Ok, so this is all just a modern variation on the old Atari Lynx and its 17 player networking capabilities. I saw a WiFi Scrabble app for the iPhone - that's a great start.
All hail Atari for pioneering this genre an reaping none of the rewards!
http://en.wikipedia.org/wiki/Atari_Lynx
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