This isn't actually a working alternative, but there is a 3d modelling and game creation software called blender. It's fully open source, written in python, for mac linux and windows. http://www.blender.org/. Perhaps this could be tweaked to work on the ipod/iphone? Could someone look into it? This is an incredibly easy way to create 3d games!!! Check out there website, see what you think and if it is at all possible then this could revolutiomnize iphone toolchain development!