Thing is, if Nintendo is first out of the gate with the 3DS, which seems entirely likely right now, then surely the multiplats will go there first. Then when Sony's next handheld is released most people will already have the SW so it won't sell very well. Obviously there will be Sony loyalists that will hold out for the PSP2 or whatever it is called SW and people who for whatever reason won't buy a Nintendo console. Just how big this market is though, is probably very much up for debate.
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In my opinion the N64 was not just the best console of the 5th gen but, to this day the best console ever created!
