Uh...whoa...now hold on just a minute there.
I owned an iphone for 2.5 years before the droid (3g and 3gs), and the droid does NOT have worse battery life than the iphone. That is the craziest thing I have ever heard. If your droid truly has a worse battery than the iphone, then there is something wrong with your droid.
By 3PM every single day, with my iphone, it would be dead. With the same amount of usage with the Droid, I have 50% left at 3pm.
My 3GS didn't have better battery life than my Droid either. As far as all the fancy 3D gaming, I'm guessing that's up to Google. They're going to have to communicate with game makers to bring their games to the Android platform, that's what Palm is doing now with the Pre.
Android's modest internal storage numbers may also hinder development. Game makers might not feel comfortable with installing the bulk of their games on the SD cards, since that may increase the chance of piracy. Gaming is a pretty big part of the marketing strategy behind the iPhone, that's probably why their A8 is clocked to 600 instead of 550 like the Droid, and why their version of the PowerVR chip pushes more polygons than the Droid.
The Pre has the same graphics chip as the Droid btw, and there are some videos floating around of a Need for Speed demo, and it looks great. So yeah, I would say the Droid is more than capable. IMO, it will be a matter of whether or not Google wants tap into that particular market.