Why can't phones have mouse pointers? Drag anywhere on the screen (ideally not where the pointer is) to grab the pointer. Do some kind of multitouch thing like tapping with a second finger to click. Then you can see what's under the mouse instead of constantly prodding your fat finger into the object of interest. I guess that would be too slow, or something? Not simple enough?
It could only ever be good for some interactions, e.g. it would be terrible for when the screen is just three large buttons for super quick access. Mode switching would surely be awkward.
I think I remember some map apps experimenting in that direction, but I consider the locusmaps "magnifying glass" undisputed king of that hill (touch interaction for maps).
Hmm, I must admit I had never thought of this idea by card_zero: why not drive a mouse pointer using touch at a distance? Does anyone with experience in this know why it wouldn't work, or whether it has been tried?