By the time a Smartphone has the power of say, an Xbox/Xbox 360, consoles will have the power of who knows what.
My own smart phone can barely run N64 Games, and that's only because of RAM limitations. I mean, hell, even if a Smartphone was somehow able to get "better" than a console within say, a year from now, there's always Computers, which outshine both in literally every platform possible, hardware wise. And once that happens, Sony/Microsoft will kick things up a notch and just try and release something even better.
In the end, it isn't about which is better, it's just what each individual prefers. Sure, there are more people playing on their Phones and Tablets now, but it's still a small percentage of the total gaming platforms. And I guarantee that most people who play on those, still own a console or PC to play on at home.
And to go with Razot, yeah, there should be a Backward Compatibility mode, and not the BS they pulled with the Xbox. I'm sorry, but if I own the disk, I'm not going to pay money to rebuy it on the Market so that I can play it the one time I wanted to go back and beat it >>