Yes, it would work very well. There's a near-perfect homebrew port on the DS[1]. I'm not sure why they haven't licensed it yet.

[1] http://www.mrdictionary.net/lemmings/

It would be tricky because there was an amount of precision required that would be tricky to emulate on touch-based input. Plus you really wouldn't want your finger obscuring the screen at the vital moment! Maybe with a stylus, though.