As part of OnLive's intent to stream you your Crysis Wars over the internet (rather than on physical media like a DVD or Blu Ray), they've put together a 48 minute demo, including the use of their companion iPhone app. The iPhone part starts at 19:30 in, and they say latency over current 3G networks is still too high, but WiFi isn't bad (though the controls are "kinda funky").
The more interesting part of the iPhone experience, they claim, is the spectating stuff. We'd disagree. But what do you think? Do you want to get your video games streaming from a cloud server, rented like streaming Netflix rather than owned like traditional media? Let us know!
(Note: no iPhone friendly video, but we embedded the Viddler version, on the frame where the iPhone talk starts, below the fold).