Ok, maybe not the most impressive portable game ever (still close), but definitely the most impressive mobile phone game ever. Rage is Id software's new game for PC, PS3, and 360. They were toying with a version for the Wii and decided to go iPhone/iPod Touch/iPad. Holy ****... Supposed to be released this year (before the big boy versions) and run at a solid 60fps. Look at the video... I was impressed. Of course, controls is another beast altogether. But it's still goddamn pretty. http://kotaku.com/5611523/id-unleashes-rage-on-the-iphone Edit: A better version of the video here: http://gamevideos.1up.com/video/id/30824
The iPhone has always had a pretty decent (but not exceptional) GPU. Considering how Apple hasn't fully implemented OpenGL extensions and the limitations of the SGX GPU, this is pretty impressive. But the best iPhone game is still Phoenix Wright.