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Not to add fuel to the fire, but I read through this thread a little while ago and saw the debate about consoles/handhelds and if they are separate markets. Just now I read an interview from Capcom talking about the 3DS and here is what they had to say.

GI: Capcom is big player in the handheld market, particularly in Japan. There are obviously some very exciting new prospects in that arena at the minute. How exciting is it to have that new hardware to work on?

Christian Svensson: Absolutely thrilling. We have a lot of projects that are in the works for handheld platforms. Stationary consoles, if you will, have migrated down to the portables. There's some really exciting content that we're talking about. I think if you look at 3DS as an example of what can be done, it's extremely robust.

Link

Obviously one developer/company doesn't mean everyone feels that way, but I thought it was interesting that he seems to subscribe to the portables filling the need of home consoles theory.