The 3DS has alienated the DS market for a multitude of reasons.
a.) The top screen and bottom screen don't match and can scratch each other. This is especially problematic due to the chamshell design on the 3DS.
b.) The analog slider has priority over the D-pad. 2D games have sold more on DS than 3D games so it's only natural that those who like 2D games want to be able to the D-pad over the analog slider
c.) The high price and low value is really apparent. The 3DS is a gaming dedicated device yet it has few games that have the mass market excited and few games coming up to further ignite interest.
d.) The 3D obsession. The battery life and affordability was compromised for 3D and the headache-inducing 3D and other health warning has deterred the market.
I think the last thing Nintendo needs to do is the remove the DS. The 3DS needs a redesign and a effective rebranding before Nintendo loses its handheld market for good.
Pixel Art can be fun.
