Now here's where it gets interesting. The DSi WOULD be competing with the PSP and iPhone... if the PSP and iPhone were targeting the same customers as the DSi. But they're not. Both of those products target the technology-savvy user. Neither one is user-friendly to technologically inept users, particularly for those features. And most importantly, neither one is actively advertised to the sort of user that the DSi will be reaching out to: the confused, technophobic users who just want an easy solution without all this mucking around with complex hardware.
Customer image is everything. If your customers see your product as too complicated, even if you feel it's the simplest product in history, it's too complicated and you need to change it to get those customers to like it. The iPhone and PSP both have that to contend with for many many users. The goal of the DSi is to reach out to those users they cannot.
Sky Render - Sanity is for the weak.
