I think the whole "people don't know the difference" thing is a joke. Maybe at the beginning when something first launches but overtime even the most Un-informed person will know that it's a new system. You go to a store and see a ton of games for 3DS now...how could somebody not know? Same will be for the Wii U.
Anyway, to answer the question: I think they should choose a new brand name. I think they kind of nailed it with 2 screens as its a great fit for HH's so I would like to see that trend continue. With that said, you can only do so much with a name like "DS" so I'd change the name but keep 2 screens. The "GameBoy" name would be a dumb thing to bring back from a business perspective because Nintendo now has a decent female following and making the name sound gender specific might push some of them away.
I also wouldn't mind the idea that people have thrown around on this site before. A console / HH hybrid would be kind of cool but that would take away the 2nd screen. Either way, hoping it's good and isn't just a simple power boost.
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