In this video, Alex Winston “demonstrates the ability to talk bi-directionally between an iPhone and iPod touch without the need for jailbreaking and only using 2.0 SDK published libraries.” Continue reading to watch.

Obviously this isn’t a very practical setup, as buying a second iPhone just to control games on the first one probably isn’t in anyone’s interest. But it does open up a whole slew of possibilities for how a connection like this might be used.

[via TUAW]