I wonder whether console gaming will indeed be seriously disrupted, as opposed to merely supplemented. So far, phones and tablets have had certainly had an impact on traditional portable game systems (3DS), but the former are still widely considered to be limited to casual, low-quality games, with the serious stuff to be found elsewhere. There is Call of Duty and Final Fantasy and Grand Theft Auto on iOS already, but only spinoffs and retro ports.
Part of the cause is issues such as controller support. I'd say this would be a much easier sell at home than mobile, since using a physical controller would just require buying one, rather than buying one and then carrying it around everywhere in case you feel like playing a game. But still, not bundling a controller, which is almost certain, fragments the market and means that developers will probably end up having to support awkward touchscreen controls anyway.
Another part is pricing on the App Store. If people are only willing to pay $5 rather than $60, how can you make the same caliber of game? Freemium works, if you're lucky enough to get popular, but it's also a miserable user experience that I hope traditional games stay well away from. Another way to see it is that on a console you have less choice, but if the indirect effect is to increase game quality and I don't mind the price, please give me less choice.
On the other hand, PC gaming seems to be doing pretty well even though for every $60 game there is a free online Facebook game; the market managed to sustain both "casual" and "serious" gaming on the same device. The same could theoretically happen with iOS... It would help if there were multiple storefronts rather than one big one, but that isn't going to happen.