First, I completely agree with everyone who says that such a controllers should ideally be made by Apple, Apple are you listening, please do it, you're the only guys who can. Second, there's clearly a chasm here. There's the casual gamers who play the occasional game, couldn't care less about have physical controls or dual analog nubs, usually never buy the hardcore $10 games anyways, and think this whole addon idea is dumb. Then there's the hardcore gamers who own PSPs and DSs and play them often and buy tons of premium iphone games and would love to have physical controls to improve the interface. The thing is, the first group doesn't need to buy the add on, I'm certain that pretty much all games would function without out just because of hte size of the market, the addon would just make them control better. This addon would be for the second group only. And thus neglecting critical aspects like dual analog nubs that hardcore gamers deeply care about is out of the question imo.
I'm a casual gamer but I'd buy an addon controller the minute it's released. Nothing beats real buttons for old-school platformers, and that's my fave genre Basically many old-school games, including fighting. That genre just can't be done otherwise. Maybe it can, but it will be something like Iron Fist Boxing, Funky Punch or Touch KO, not Tekken or Virtua Fighter. so yeah, old-school gamers in addition to hardcore gamers