CPS-2 runs fine on an existing iPhone 4S (just tested it here-- 100% with occasional instant hiccups at 95% that don't seem to actually affect gameplay on MAME, steady 100% on FBA), so I'd say you should be able to aim a little higher than that. Maybe even GX.
At least on the iOS port, it seems to come down to how friendly the architecture is to the platform. Twin 16 has one more 68000 than CPS-2 and runs notably worse (Gradius 2 autoframeskips itself to 5 pretty quickly on MAME, but seems to be fine on FBA-- less accurate but better optimized 68000 emulator?)
Honestly, it's going to be interesting to see what the upper bounds of this will be in a few years, but it may have unfortunate side effects in terms of even cheaper, easier to reproduce multibootleg boards.
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Try checking the MAME manual at http://docs.mamedev.org
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