I've been thinking about this aswell, but I also had the idea of LFS on your iPod Touch/iPhone.
Just 3 cars or something, up to 6 players, not the best graphics? I mean, you can get Xplane and it runs mega fast so the iPod should be fairly capable of holding LFS, surely not?
I say have the demo stuff. Thats all of BL, XFG, XRG and FBM. I would buy it at maybe £5.99, same price as Xplane?
EDIT: Sorry for thread hijack, should I start another thread?
DOUBLE EDIT: I'm up for the LFS Outgage on iPod Touch/iPhone, sounds amazing
TRIPLE EDIT: I thought if you connect it by USB then it could charge and still work because not everyone has WiFi, they might have got LFS from a laptop at a friends house or a WiFi, plus WiFi eats an iPods battery.