It's definitely possible if we will be able to use actual game controllers for it, but with Konami's recent track record, I'd say it would come out as a match-three puzzle game.
Except this time, it's a lame dual-stick shooter! And technically... I don't know if this game is possible on iPhone... It even pushes the limits of the PSP, with both content and graphics. If you consider just how much stuff is in this game too, the filesize would be beyond gigantic. It'd be at least 1 gigabyte, if not much more. And even if it was possible, as we discussed, there's no way they'd actually port it. At this point, I think I'd just be happy with a port of the original Metal Gear. It'd make up for the crappy MGSTouch at least.
Those are just mini games, the graphics aren't even pushing half the iPod's limits either. For one thing though Peace Walker is more than a gigabyte, which is already a turnoff to download. I think the it would probably have to only be for iPhone 4, also stripped down in content...Konami will make it terrible somehow