The iPhone and App Store helped push the mobile gaming industry to become a $5.4 billion market in 2008, a 20% increase over 2007, according to a new JupiterResearch report. The report states that overall game downloads were flat in the U.S. and Western Europe, while they rose in emerging markets like China and India. Java-based games reportedly saw a steep decline in sales, but were offset by iPhone game downloads. Report author Dr. Windsor Holden…