Although the touch-screen sounds interesting, I'm disappointed that Nintendo is going to even attempt to make 3D games for the DS (which is supposed to be made primarily for 2D games, judging from the DS-Nintendo interview a while back), especially since the PSP is a powerhouse compared to the DS (specs-wise), which (judging from the PSP game screenshots) is being made primarily for 3D games.
But, of course, you never know what 3D wonders the DS may pull off... perhaps another chip put into DS games, like the chip that was put into the later SNES games to calculate polygons at fast enough speeds.
And as for blowing the PSP away - have more faith in Nintendo schi0249! They have had the handheld gaming market in their palms for almost a decade now, so you would hope that Nintendo have spent some time sussing out what they need to do to keep their foothold in the handheld-side of the gaming industry (which IMO, is a key to their future survival).
If the PSP is successful (through their marketing of good-looking (but most probably boring) games), then I wouldn't be surprised if Nintendo would be bothered (slash 'findItaWaste') to spend a shitload on advertising, when they probably would never 'win' back the market anyway.
Jeez, now I'm sounding as if I have no faith :lol: I think I'll stop now..