I'm sorry, but I do think Nintendo's right... for now. They are sound in their thinking that there is too much... well, stuff... to dredge through on the App store, making it hard for someone to find a game from a developer unless they already know about it. Thus, the shelf-browser's sales will be lost. Not to mention that yes, while it is cheaper to develop for, most of the apps show said cheapness. I guess that could be a case of "You get what you pay for."
However, it's already happened in Japan- and portables are far from dead there. When even companies such as Square-Enix are doing cell phone exclusive games, it shows that there is a market. Yet, the portable market is still very strong over there for both the DS and PSP. So no, iPhone isn't going to kill either of them.
-dunno001
-On a quest for the truly perfect game; I don't think it exists...
