Anyway, the idea of a 3D SDK for the iPhone is pretty exciting, isn't it? Unity surprised me with how efficient it is for a web-based 3D solution. I'm imagining Zelda: PH-style gameplay.
It's cool news- I dig Unity, and I don't doubt they'll get it running just fine on the iPhone. I'm more excited that it will allow for rapid development of games, as opposed to allowing for more complicated 3d games. I usually bust out games on the phone when I'm standing in line, waiting for a subway train, etc... never more than a few minutes. That and the control scheme on the iPhone is vastly different, and probably wouldn't jive well with 95% of existing games out there.
How does the iPhone deal with a stylus by the way? Anyone know?
Short answer, it doesn't. There are some objects that claim to work as a stylus on an iPhone, but they all resemble markers, or giant q-tips. The iPhone probably won't work as well as it should for stylus-based games. Fingers are fatter than, say, the stylus on DS, and they block a significant part of the screen while you're touching it. The smallest targets I would picture a player hitting on an iPhone screen without getting frustrated would be the size of the main menu icons.
There's a lot of possibilities though when you factor in the multi-touch (you can get away from typical mouse/stylus control) and the accelerometer.