Yes it can be used. In fact there are free, high quality templates available on the web for both Iphone and Android OS's. The real issue is what kind of interactivity are you hoping for? FW won't reproduce swiping, for example.
Less than a couple minutes spent on Google brought up these resource results and more:
Thanks for the links - I also wanted to make sure that FW was the Adobe program I should be using. My interactivity is essentially going from one screen to the next... I primarily use PS!
Well it partly comes down to personal preference, but IMO, FW is the application to use.
Check out these articles as well:
Is there any advantage to downloading interface templates to design within vs. using device central templates?
Umm well, the templates have all the graphics. A device profile does not. It's mostly technical specs on the device itself and sometimes has the added bonus of a device skin. You won't find many iPad/iPhone profiles with device skins on Device Central though. I think I located 2 or three, a couple of which were created by Adobe. The rest are just profiles with generic skins.