Space Ace and Dragon's Lair are now both available for the iPhone and iPod Touch. Dragon's Lair was once a very popular arcade game. It had breakthrough graphics at the time. Joystiq says the iPhone version lets you play the arcade version and a different version that has unseen screens. CNET says movements are controlled by an onscreen d-pad.
Movement is controlled, like Space Ace, with an onscreen d-pad that lights up with the direction you need to choose before triggering a death sequence. There's also a sword button for fight instances; while the gameplay is basically a reflex-tester, it's the precursor to instant button-pressing fight moments that made a big comeback in PS2 games like God of War.
You can find links to download both of the games here on digitalleisure.com.