I'm not so keen on touch screen controls for games that are designed for a joystick or D-pad - that goes for Windows Phone 7, iPhone, and Android. For emulators my Gp2x Wiz will smack any of these around. I have an Android Fascinate, but unless the game is specifically designed for a touchscreen, I don't want much to do with it. Another exception is racing games. These work quite well with these type of phones.
In any case, Steve Jorbs can come back down to reality from cloud Apple when he stated at a launch presentation that the iPod Touch is the #1 gaming platform in the world. I guess he can say pretty much anything and people will accept it as truth. He stated that 1.5 billion games were downloaded, but the slide behind him did not back up his claim. The slide stated that "1.5 billion 'Games and Entertainment' titles have been downloaded", including fart apps. That's like saying the PSX is the #1 CD player in the world, even though most people never used it as a CD player. So, I don't think smart phones are in reality a big threat to Nintendo or Sony regardless of what Jorbs says. Most of these smart phone games are simple boredom killing apps that make Klax on the TG look like gaming heaven.
That said, I think it's cool that Hudson is expanding into the smart phone market. Hopefully they also expand to Android and WP7. If this will allow more people to have access to oBey then I'm all for it.

The pricing per game seems a little expensive, however.