Portable gaming: Competition or War of the Worlds?

[Final-Fan]

("Portable gaming" was the only short-title-friendly way I could think of to express the DS/PSP/etc. on one hand, and phones/IPads/etc. on the other.) 

I am going to admit upfront that this thread is something I came up with off the top of my head and no research went into it to see if I am mistaken about certain things, so you can correct me or argue whatever, as if you wouldn't do that without this disclaimer. 

Much has been made of the rise of gaming on cell phones and Ipod Touches and whatnot, with many suggesting that it spells the end, or the beginning of the end, of the dedicated handheld gaming devices that have made Nintendo so many billions.  But is that really possible?  And if it is, what would the consequences be to gaming? 

I may be wrong here, but it seems to me that the simple fact is that the games to be found on these other devices are in a different continuum.  Angry Birds may have sold umpteen jillion copies, and have "hardcore" players, but it's still an extremely simple game:  "launch object at stacked objects; watch physics-based result".  Many games are more complex -- I think the Ipod plays Plants Vs. Zombies now? -- but I don't think those platforms can ever accommodate the breadth of games found on dedicated handhelds.  Therefore, the handhelds don't have to fear being made obsolete. 

But that doesn't necessarily mean they don't have to fear destruction.  If the 3DS and PS Vita really do find themselves squeezed out by cell phones and media players, it wouldn't just be a changing of the guard.  It would be a genre holocaust for portable games!  Some genres would be fine -- many have already proved their ability to thrive on the ever-improving multimedia devices -- but I find it hard to imagine some others making the transition as successfully. 

Obviously since people DO buy games and play games on other devices, a certain amount of that time and money is going to be taken away from the handhelds.  But not all that much, I think.  Although some people will be satisfied with the games that can be adequately experienced on their cell phones or whatever, there will be many who go from Bejeweled to Puzzle Quest to Pokemon.  This is a simply huge new audience being enticed to game more. 

What do you think?  Am I cluelessly reinventing the wheel, stating obvious facts?  Hopelessly wrong, flaunting my ignorance?  Terrifyingly right?