The handheld market is one I really don't understand from a gaming point of view. I don't like handhelds and I won't be buying either product. With that being said I don't see this ending well for the NGP, it's specs seem to indicate it is trying to capture a hardcore market and that isn't what the handheld market is made of. At it's core a handheld market is a casual market, something parents by for their pre-teen to keep them occupied. The increased competition from the cell phone market and the low margin on gaming revenue for the micro games people are now buying on these products, I can see the NGP being the odd man out.
3DS seems to have the right idea, introduce a new concept, keep it kid friendly, and play to the base that caused DS to be such a huge success.
