You're the master of hardware, but how about software?
I challenge you to build an app for the iPhone that will work in conjunction with a small chip-based converter that will allow the iPhone's touch screen to work as a controller for an Xbox 360. It can connect either wired over the standard USB connection for the 360, or, for a real challenge, wirelessly over the Bluetooth standard connection
Interesting idea but why? Surely you've played games on the iPhone/iPod Touch, touch screen only works well for basic games, I would imagine it would be terrible at implementing a d-pad, 6 push buttons, two triggers and two thumbsticks. If you want basic functionality for menus and dvds just get a remote 
It would be possible to do but I reckon you would have a dismember a 360 pad to wire up to the receiving end to do all the comms between the pad and the 360.
Edit - Just re-read post above and what he said
Interesting idea but why? Surely you've played games on the iPhone/iPod Touch, touch screen only works well for basic games, I would imagine it would be terrible at implementing a d-pad, 6 push buttons, two triggers and two thumbsticks. If you want basic functionality for menus and dvds just get a remote
It would be possible to do but I reckon you would have a dismember a 360 pad to wire up to the receiving end to do all the comms between the pad and the 360.
Edit - Just re-read post above and what he said
