Even if casual gamers pick up a few applications on their phones, there's still plenty upon plenty of people who don't even own iPhone's and would rather play with something more real~ when gaming. When you think gaming, you think of a controller, buttons, a keyboard, a mouse, whatever, a physical way to play the game. You don't think touch screens as quickly (at least I don't). I've seen more casual gamers have DS systems than I have seen them have smart phones with applications on them. Sure, an application game is fun for what it's supposed to be, short and sweet. A console game (or PC game) is for the loooong haul baby, hours and hours of gameplay! Personally, I have played with consoles and also with flash games and console games keep my attention much longer because there's always something lacking flash wise to me. It isn't just the lack of a physical controller to play with. I think it more deals with the fact that they're just meant to be short so I take them as they are and play them briefly when my phone is all I got.
This Angry Birds guy is either full of himself, or he thinks everyone will have a smart phone and abandon the consoles they loved for years for flash games on cell phones. That isn't going to happen, seeing as there's still way too many people who purchase consoles and physical games. Consoles have more storage than a phone, better specifications to meet gaming standards and games run MUCH smoother on one. My phone tends to lag or even sometimes shut down an application if it's too much for it. So, unless a phone is going to have a disc drive, a 200+ gb built in memory, and better hardware to run a game, application gaming will only go so far and console / PC gaming will still be far far ahead of it. I don't think they'd die anytime soon and definitely not to the fate of application games. o.O