I played bits of Colors and that music/action game with the guy with the guitar as a hero. Both kinda sucked - framerates seemed 20ish for both games.
Hardware isn't so hot either - screen has a lousy viewing angle and is very disappointing compared to the PSP.
The fact that everything I saw here was crap (well, except the booth babes, I guess) isn't that much of a surprise - I saw a Sega classics pack running on a Gizmondo at GDC, and I noticed the version of Sonic running there was running at 30fps instead of 60fps.
They were periodically handing out crap - I REALLY want a T-shirt to go with my Phantom T-shirt from last year...