Do you think the iPhone 4 and iPod touch 4 have better graphics than the wii?

Epic games, the people who made gears of war, recently got the Unreal Engine to work on the iPhone and iPod touch. They just released a tech demo on the app store called Epic Citadel, and the graphics are literally that of a PS3 or Xbox 360 game. Just search youtube for Epic Citadel. Do you think this will establish iPhones and iPod touches as real gaming devices?