Yes, Newton is just a physics engine, you need to combine it with a graphics engine (maybe Cocos3d?). I've looked at Bullet before, I guess they're quite similar in features, I just found Newton more easy to learn.
Splash Ball runs at probably 15 to 20fps on a 3G, however mainly because of the graphic engine (the real time shadows are the problem, I'll probably disable them on the next update), from what I've seen on the profiler the physics engine does not cause much overhead (of course, it will depend of how many physic objects you'll have in your scene).
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