Is this a triumph? Portal running on an iPhone? Not really, according to Gizmodo:

The video says the demo was made using the Unity Engine, which means they took some Portal assets and made a small demo with them. They didn't take the full game and squish it onto the iPhone; what you see is probably the entire thing. There's no way the Source Engine is running on the 3G. Maybe the 3GS, but not the 3G.

Not yet! But we figure they'll keep on trying until they run out of cake... or Valve pulls an ID an actually releases a game for the new 40+ million unit iPhone/iPod touch platform. Right Valve?