The main reason why touchscreen gaming isnt taken seriously is mainly because it's touchscreen. Another is the lack of depth, story, and intuitive gameplay. In all honesty PSP and DS games, which came out nearly a decade, are better than most iOS games. No the graphics aren't good, but it pretty much beats the crap out of any iOS games in anything else. iOS can have great games though, but the problem is some devs are making games that should best be played with physical controls, like Dead Space and NOVA. Games like Ghost Trick, which was a DS port, is an excellent game. Controls, gameplay, graphics, story, it was their, and I'm not even into those kinds of point and click games.
QFT (almost) You have to have a pretty big hit to make any profit down in the $2.99 and below area, even with a small team. We have a small team and a reasonable hit atm and we're over the moon with how many people are loving it, but even so there're no ferraris on the horizon. It's hard to imagine us making enough money even in launch week to fund a team of 50 for more than that week. Also, the very top sellers (Angry Bird, Fruit Ninja, etc) get a lot of press for making sooooo much money, so part of this is a perception that all devs are coining it in and being greedy. I only wish that were true - there's a gaping maw between "those" titles and everyone else. I personally don't believe people in general are that tight, but when you get drowned out by a vocal minority moaning about prices that are practically free, it will be a brave developer investing millions into that amount of negative peer pressure.
I'm not some iOS fanboy but dont fully agree with that. The PSP and DS are great machines, i avoided iOS gaming for a while as i thought 'nah just be crappy mobile phone type games' and then when i gave it a go i was blown away. iOS has a huge wide range of games, from basic 'Angry birds' games to more in depth RPG's or platformers which are brilliant to shoot em ups. I wouldnt say PSP/DS games 'beat the crap' out of iOS. Considering how cheap iOS games are its amazing the value you get for them, so its sad when lots of kids wait for sales or whinge when a games 2 dollars not 1.