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Honestly, I can only judge myself once it is actually released to the public. It's not even out yet so it's pretty difficult to judge.
 
Not bad, not bad at all.

Seemed a bit laggy, however that may just be the camera.

It was hardly enough to really be impressed over, they basically just walked around, but the graphics looked impressive.

I don't think it necessarily beats the iPhone, however.
 
Wow...

I don't even want that on a phone. I'd pay for that to be just a handheld gaming system! Looks awesome!

I bet the next gen Zune will run the same software and run the same games... If so it may actually be a worthwhile purchase.
 
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