Not really. Like the article says, spending big money on an iPhone game is a bad idea, because the market can't support it. Games can easily cost millions of dollars to make, but I can't picture them making even a fraction of that money back. Which will, of course, limit us to playing miniaturized games with simple controls.
That's NOT what the article says. It doesn't say it's a bad idea, it says that the market can't support spending 10 million dollars making a game yet.
But look what already has been achieved with ports like Super Monky Ball and Crash Racing and original titles like Dizzy Bee and De Blob (not to mention all of the professional, medical and aviation apps already being created.)
No, we will NOT be limited to playing miniaturized games with simple controls, we will be exposed to innovative new games and titles that can't be made on any other platforms and this will lead to the iPhone becoming a powerful player in the handheld (not mobile/cell) gaming market sooner than you think.
In the meantime, yes, we do have to wade through a lot of crap.