His birthday was last week, and we considered it but put it off because of the temper tantrums. The reason why we're still undecided is like you say there are definitely some positives there. Word recognition at 3.5 is great!
What we tried last night was to explain the sequence. Physical playing, dinner, then the phone. We also put a timer on which went off when he had to pack away the phone. It's funny, 5 minutes before the alarm went off he announced that he was finished and to pack it away.
Hopefully it wasn't a once off but we're going to be persistent.