I think a lot of gamers are rather unrealistic about what smartphones have to offer. If you can't find a lot of "hardcore" games on your device's marketplace then you really are not looking hard enough. If you were to get larger publishers on board, like EA, Square Enix and Activision are doing, then you'll really see the devices start to shine in terms of handheld gaming.
My objection with playing games on a smartphone isn't with the selection. That will obviously change fairly rapidly if the market need is there. The problem is that the hardware is not very well designed to facilitate playing a lot of games. I don't mean processing power, I mean the physical makeup of the machine.