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If DS were outperforming PSP based solely on Nintendo games, it would just be scary, because it would mean that Nintendo was outperforming every other developer in the world combined. But that is obviously not the case.
Between 12/17/2007 and 2/4/2007(I didn't go back further out of sheer laziness) the Japanese market saw 17,455,000 games sold, 8,442,500 were published by Nintendo that's 47%. I happen to agree with your point, I just figured I'd also state that we really shouldn't compare the third party companies to Nintendo, Nintendo does own almost half of Japan's market, and its that fact that also allows third parties to enjoy the enormous user base the DS has.