Technically, it's probably possible as we have all sorts of 3D racing games on the iPhone/iPad nowadays. User experience would be quite reduced from the desktop version though, as it's very hard to get a full on racing sim on a phone where you can only use two controls at once, plus tilt (I know that means throttle brake and steering, but you get what I mean)
It would be nice, but the developers are busy with S3, I do feel your pain though for a realistic racing sim on my iPhone!
(First post by the way, I've had LFS for a few years though!)