While the iPhone 2.0 update with apps won't be released until "late June" they did show off some demos of what could be done on the platform.
The biggest surprise was a demo of Spore from EA. It's unclear how featured the game will be, but the demo showed off the cellular level and tilt controls. The creature customizer was also shown.
SEGA showed off a port of Super Monkey Ball with full tilt controls, which they believe is a natural choice for the iPhone.
AOL showed off a very nice looking AIM application with a good feature-set and controls. Switching between IMs is done by swiping from side-to-side. We'll see how it works with the data connection, though. Hopefully it won't require a constant connection and be more passive.
A few other tech demos were shown and the crowd was generally impressed with the performance and graphics.
Pics after the cut.
Super Monkey Ball