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It's a rail shooter because of control issues, not power. Drop your phone in a dock attached to a gamepad, and those issues disappear.

According to Carmack, it's on rails to reduce file size (texture LOD):http://toucharcade.com/2010/11/19/john-carmack-on-rage/

And then some. On the 360 Rage comes on 3 8GB DVDs. The megatexturing method that Carmack favours is intensely data-heavy.

Look at screenshots of both, the iphone version looks great for a portable game but there are differences in the level of detail.

Most iphone/android fps games look like PC games did ~2003