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Paying 600 euro for a handheld?
No thanks, I will not enter in the "apple game".
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I don't think it will. Like many said, for casual gaming maybe. But hardcore complex games probably won't be seen on the iPOD touch, regardless of what hardcore apple goers might think. If they added a more versatile button set then maybe it'd be possible to do some hardcore games. But since the iPod/iPhone is suppose to do a lot with very little, they probably won't be adding anything extra to it.
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I liked that Tetris Attack ripoff game on the ipod touch. It adds something new by tilting the screen to have the pieces move around.
But without regular buttons, I think the ipod touch games will remain a novelty.