John Carmack of id Software delivered his keynote today at QuakeCon 2010, and showed off Rage, the most impressive piece of software we've seen the iPhone run.
Rage is an upcoming console and PC game, but Carmack & Co. are known for challenging themselves with new tech. This demo runs at 60 frames-per-second and makes use of the developers id Tech 5 engine. It even uses id's MegaTextures He says that it will "kill anything done on the Xbox or PlayStation 2."
While showing off the software, it was played on an iPhone, but it was mentioned that the game will easily run on the 3GS and "runs great on an original 2G iPhone." He mentions that it will run at a similar or better frame rate Doom Classic, and "significantly better than Doom Resurrection," two other id games available for the iPhone.
The video footage is available here: Kotaku