> ... even the damn iPhone only sells as well as it does because it's a moderately capable gaming machine
Hahahahaha - oh, dear, you *are* a hardcore gamer aren't you? That statement, my friend, is worth preserving as a sort of ISO standard of crapness.
The reason the iPhone sells so well is because it's slick, neat, and all the cool people have one. I know people who've bought it solely for those reasons alone. My brother owns one purely because he wanted to upgrade his phone, he's an Apple devotee, and he wanted a small, modestly powerful web browser at his fingertips.
I'm sure games make lots of money on iPhones - you can certainly see it on the Android platform. But they're hardly the reason for the iPhone's existence. Surely the 'Phone' in iPhone is a giveaway as to their true purpose? Surely Apple's previous line-up of iPods shows where they came from? Having games there is fun, no doubt, but you might as well assert that the purpose of the Linux Kernel is to play 3D games for all the relevance your statement has to the iPhone.