The possibilities are indeed endless.

Some dudes have managed to run the popular first-person shooter game Quake 3 on the iPod Touch which allows for on-the-go gaming madness. Thanks to the Touch’s built-in Wi-fi feature, you can likewise play two players on it (provided of course you can find someone with a Quake-running iPod Touch which I highly doubt). Navigation through the game makes us of the accelerometer of the Touch  and shooting is done by tapping on the screen. It’ll be a bit tricky at first, but I pretty sure, once you get the hang of things, it’ll surely be addictive.

I don’t expect this to become available through legal channels anytime soon, but with this proof of concept, maybe Apple would want to tie-up with id Software in the near future as this could be a lucrative partnership in the long run.