You also need a Mac, as the development kid does not work on Windows PC.
Instead of an iPhone you could also get an iPod Touch for development, its cheaper.

Some small recent games of mine:
Griefer 4k http://damocles11.byethost9.com/griefer4k.html
Kobold 4k http://damocles11.byethost9.com/kobold.html
Cave 4k http://damocles11.byethost9.com/cave4k.html