I own an iPhone 3g and it's great. You can do basically what you do with a computer but on-the-go. I can listen to music, watch videos, play 3D games, go on the web etc.
It's an all-in-one machine.
One con though: its price!
My favorite oldies are:
- Duke Nukem 3D
- Broken Sword
- Bad Mojo
They all have been released in 1996!
My TOP modern games:
- Gears of War 2
- Call of Duty 4
- Gran Turismo 4