Does apple IPHONE support high quality games???
It depends on what you mean by high quality. Because of the touch screen, the user interface is obviously limited. Then the screen resolution is limited to 163 ppi. Once you get past these two limitations, the quality is defined by the developer. In the meanwhile, the low quality games can be found at http://www.allfreeiphonegames.
Not right now, although they have recently released an SDK so that outside developers can create applications that could run on the iPhone, some of which will, presumably, be games. It remains to be seen how many of these there will be-a lot will depend on how restrictive apples application approval process is.