Is GP2X popular worldwide?

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No it does not.
iPhone - iPod touch have the same SDK, the same OS and beside vibration, cam, speaker and distance proximity meter (ie the handy part) the exactly same hardware as well

So if you develop it with iPod Touch in mind it will run on iPhone as well without any problem.

And the greatest thing is actually that development is worlds easier faster and more productive for it. Why:
1. The emulator which you get when installing the SDK. Allows you to test anything on it including OpenGL ES since the newest beta version)
2. Debugging: can be done in the emulator BUT can also be done on the device itself with breakpoints etc etc. Stuff that on homebrew will never work, you will need multi tousand dollar dev kits for that on handheld consoles.
3. Deployment to your costumers is easy. The 100 USD contract will allow you to sell it through iTunes store. I don't think we need to mention HOW MANY users there are, right? :) And as simple the updating will be through the same.
Far less problems for you and your costumers.