Even baked, the lightmaps are great quality !
The engine allow vast and beautifull scenes.
Unreal engine allow to manage lot of polygons in the scene, just look at rocks, or rounded corners on the city !
And there is a room with reflections and special effects, but well let's wit for a talented team to make a game using Uneal 3 engine for iphone to see what it can really do !

I recognize some others engines have also lot of power on Iphone !
I played the last FPS from Gameloft on Iphone 4, just amazing the quality. i've remarked they have used good optimisations like the use of 3 LOD for characters for example, it allow sprecise characters for an Iphone when your are near, and to have 5,6 or more ennemies at same time at screen !
The animations of weapons, sounds, precise textures all for an Iphone is top quality, lot better than any FPS on PSP for example.
Even more i didn't find any time on 3DGS some FPS demo as good as that game on Iphone !!







The big advantage of Iphone or Android, is the price for such quality games. On PSP or NDS that's lot more !