Game Dev Story. Funnest/most addicting game ever for the iphone/touch. You control a game company, and you hire programmers, designers, etc. Then you start releasing games for different systems that are modeled off real life consoles, and preform like them. IE Intendro IES does really well, while the Virtual Guy does not.
You get to pick the genre of the game, and then see your sales. You even go to game shows to show off your product, and see people line up for your games.
Plus the graphics are in nostalgic 16bit, and it fits perfectly for the game. Make sure you turn on the gamepad (which is probably the best control scheme I've used for a touch game, it gives you buttons below the game like a gameboy sort of).