"Little inherently wrong"? How about the incredibly limited control scheme? the tiny tiny screen? the controlled closed source market? the amount of "free to play" games requiring cash to proceed, or straight up micro-transactions? Not to mention all the personal data you are being unwittingly stolen on, or apathetically don't care about?
When the controls are only swipe and tap, phone games are fine. unfortunately that leaves little more than distractions and time wasters and nothing to speak of for new or interesting experiences. though, I was satisfied with FFVII on my phone. hardly the best way to play it, but I will make exceptions for the portability of it.
I'm going to assume that you never played on a GameBoy, GameBoy Advance, DS, 3DS or Switch.
Although it's a personal preference issue, I'm confident that there are enough different screen sizes in the mobile space to accommodate most people; from 6 inch phones to 10+ inch tablets. Sure, there will always be outliers, but for the majority I don't see this being much of a problem.
There isn't much personal data that could be stolen through gaming that isn't already being stolen by normal phone or tablet use. Large portions of humanity use mobile devices without caring about this, I doubt that it would stand in the way of gaming on mobile platforms.