No. Well, it does but teeters and totters so much that you might as well just wait for it to crumble under its own shoddy construction. 
First off, Tower Bloxx on XBLA is a great game. On the Nokia N97, it’s not so great. This is mostly due to the poor accuracy and lag in the touch screen. Now it’s a resistive touchscreen so you can use all sorts of things as a stylus to improve the accuracy, but there’s no mounting or place to carry the stylus, so if you haven’t got one you’ll just be frustrated.
I played the game with and without some sort of stylus and I have to say, it’s not even worth the effort without it. Plus the menu options are so small at times that it will take ten tries just to decide whether or not you want sound.
Tower Bloxx is, just as it is on the Xbox 360, a tower building game where you have to drop new levels on top of the existing ones. The levels are swinging on a crane hook and you have to drop them at the exact moment to get a combo bonus. Eventually the tower will begin to sway to and fro making it more difficult to hit accurately and this will indubitably lead to further sway for the tower. There are several modes in the game including board (campaign), time attack and challenges as well as a quick game mode. The challenges are locked in the beginning so you’ll have to play through the campaign to get to them.
The graphics on the game are blocky and jagged. Considering this is on a brand new Nokia N97 I was disappointed. After having done so much gaming on the iPhone, coming back and seeing graphics of this low quality made me not even want to see other games. It seems that in graphics Nokia is still lagging behind, or the developers are.
The sounds in the game are in the same sub-par region as the graphics with a redundant, uninspiring soundtrack and no in-game sounds at all.
Piled on top of all that is a horrible menu system that requires multiple taps in the lower corners of the touch screen to select, and verify choices. This game was most assuredly not designed with a touchscreen in mind because the menu choices are so small that even with a stylus I could see them being problematic.
Tower Bloxx New York on the Nokia N97 has managed to suck all the fun out of the franchise and leave behind a stale taste and a faulty construct. In a nutshell, don’t bother with this game, it should be marked for demolition due to all of the flaws.
Now the game is freely downloadable, but even then, it’s still not all that good and I would not waste time on it.