Well, the iOS (the iPhone-based software) wasn't released until spring 2007, and I didn't really remember them banning or discouraging games for it (I could be wrong); partly the problem was that it was extraordinarily expensive and it didn't pick up with the general public at the time (everyone had a cell phone, but it was usually the slide up-type, or if you had money, a Blackberry). I got my first iPod touch (the redesigned iPod designed to look like a iPhone, sans phone capabilities) in fall 2009 where the price had dropped enough for a somewhat thrifty high schooler like me (at the time) to afford one, and by early 2010, there were tons of games on there, but mostly either old ports (like Mega Man 2, which controlled horribly), scaled-down versions of consoles (a Katamari Damacy game based on tilting), or the aforementioned Flash-type games (things like Cut the Rope or Angry Birds).