Yes, but let me explain why we won't ever be gaming on littlephone sized computers. A large part of why parts are getting more powerful is BECAUSE they are getting more compact.
We can now fit more than 8 cores on one cpu because they are smaller and produce less heat. On modern cpus, the individual cores are no longer greatly increasing in speed but rather we are concentrating more of these cpus on the same job.
Graphics cards are getting faster because we can fit more pixel shaders on them, more processors, whatever (I'm not an expert and can't remember the names of the actual parts off the top of my head).
The more space it takes up, the more powerful a computer can be.
The reason why they won't shrink is because we can very easily develop software to take advantage of faster hardware compared to how difficult it is to develop new hardware.
We will always need that extra space to take advantage of the most current software. They will continue to fit the most powerful hardware possible in the size and price range that consumers will accept.
That is, until we develop quantum computing.