Not to gloat, but i think you would love my game. Orbliterate HD it supports Two player / Four Player (local) multiplayer. Here's a video: http://www.youtube.com/watch?v=H7rnbujnwew Check it out! http://toucharcade.com/link/http://itunes.apple.com/us/app/orbliterate-hd/id367718364?mt=8
Robots vs. wizards next release is actually a split screen space fighter The best way to describe it is something like R-type (without old school sprite graphics) but in battle mode for 2 players. There is a virtual joystick on each side but players fight on the entire map with objects to navigate around. You will also have limited ammo with auto recharge. During tests unlimited blasts made it kind of boring. With only a few shots you can sneak out blast a few shots and take cover. Again ill make a post soon. To be honest the only thing holding it back is a good name! lol
Split screen multiplayer I'm mostly into puzzle games, but I really like DropZap. I've heard that Mirrors edge is good. I also know about these: SudokuDuo and Dubble