I personally believe that we are on the verge of a fundamental shift in computer UIs. And it starts by scaling up from a simpler solution (e.g. iOS UI, Android, Meego), not by scaling down from a more complex solution (traditional desktop UIs).
Now the interesting question is that when we need to support a lot of different kinds of actions/tasks in an application, how will this be supported in touch UIs. Russ mentioned Photoshop as a good example of such application.
In our upcoming iPhone game, we have played around with circular context menus and at least in that setting they seem to be quite promising. However, you can really only have a few choices (4-5) in circular context menu on iPhone. However, on iPad or tablet, you could have several "rings" of actions. Traditionally, in mouse-based systems, circular context menus haven't have several rings because of the Fitts' law, but on the touch based system, I don't see that as a problem.
Any thoughts of possible directions, where touch UIs will evolve?