Although I have an iPhone 4, and won't be able to upgrade, the iPhone 5 seems interesting to me, as I want to know what it is capable of.
iPhone 5 To Have Aluminium Backing and New Antenna | Next iPhone News
This link suggests an aluminum backing instead of a glass one, although I am fine with the glass one actually.

iPhone 5 Part Suggests Sliding Cover? | Next iPhone News

This article shows a leak from people that have been accurate in their leaks about apple products. This suggests the iPhone 5 being a slider phone. What could it slide for? A keyboard? It seems unlikely as Apple seems to want the virtual keyboard to be the main one. It also mentions it being slightly thicker than the iPhone 4, so maybe it could be doing what the Xperia Play is doing, adding controls for games. Not sure, and that second one seems unlikely. But it might not even slide, but speculating is fun lol.

http://www.businessinsider.com/iphone-5-screen-2011-3
This article contradicts the one right above this but states that the iPhone 5 may have a 4 inch screen instead of a 3.5 inch like the previous 4 models, and will be thinner than the already thin iPhone 4

interesting, is actually good possible that they are throwing in controls on there phones. That would be a death blow towards dedicated handhelds. Apple is recruiting atm top figures out of the gaming industry such as a dude from nintendo, some dudes from other developers as well.

They could easily provide a docking station, where to press the iphone in, to make you play through a kinect kind of solution with your mobile games on your tv. as the resolution of those mobiles are going ski rocket high.

With solid controls the platform can be major attractive for bigger company's, specially if they allow higher costing games on there platform. such as 20-40 dollar games.

Apple is going to enter the gaming market on console level and handheld level sooner or later. Instead of microsoft being the 3th player, is good possible that apple is going to be the 3th player here. Specially when they saw how much cash can be made on there platform through it.

they already shown interest in gaming company's.

Definitely going to get the Iphone 5, since my 16GB 3G is finally starting to get long in the tooth.

The iPhone 5 is going to be completely transparent
I also agree with you, adding controls would REALLY hurt Sonys and Nintendos handhelds, but I think they'd both adapt

Depends entirely on what developers are going to do. With eastern developers jumping way more towards multiplatform. Its going to be tricky for sony/nintendo to hold the market towards there own devices.

If developers ignore it, or just use the mobile devices as ( older cash in ports ) then handhelds got a life next too it. Even if phones are getting buttons.

Time will tell.

I saw an article on them getting those a guy from nintendo and a guy from activision.

But anyway, honestly I hope this isn't the route they are going. That would cause the phone to be a little bit thicker abd I don't want my phone to be thicker. I like that my iPhone 4 is about as thin or thinner than all of my other phones, and they weren't smartphones.

Although if it meant actual good games on it, then maybe I would be ok with it.

It would be interesting if it could handle being a handheld gaming device and a smartphone. It wouldn't be that big of a threat to dedicated handhelds. Sure it would be a threat, but not so much that the other 2 platforms are in trouble. Although it may take almost all the casuals away from nintendo.

We grown up with microsoft and sony. Microsoft is still a new player in my eyes. but for the generation of people that started gaming last generation. they are just as big as nintendo and sony.

If apple is going to push further and get developer support. it could be possible for people to not even look back anymore towards dedicated handhelds / consoles. As there phones / ipads will keep them occupied. ( new people i'm talking about ) without new people on there platforms, the platforms will die out eventually.

Soon those new generation(s) of people (think about generations that start to gaming scene now ) will see apple as a cool piece of tech. buy on younger age ipods for mp3's and play there download games with each other etc. People see there friends having those. and will buy it themselfs, and change that eventually to iphones. ( specially if console and handheld like experiences ( through developers jumping the boat ) are equalized on there mobile platform iphone.

The next generation "so think about new gamers that start in 5 years" ( if apple dominance is keep going like this ) Wont have anything anymore with nintendo or sony or "microsoft". As there "nostalgic games = angry bird games or games for the ipod like HD racer or whatever els that gets released on it at that time.

This is only ofcourse if apple gets even more success then they already got. And they keep growing. Nobody knows whats going to happen.

But its isn't looking that good for handheld gaming. As 3th party developers are expanding like hell atm, they will have to feed there people and feed them with salary's. If suddently the console/handheld gaming market is going to slink big time. then they will jump towards mobile solutions with atleast ports.