its because smartphones are rapidly catching up to smartphones in terms of gaming experiences. Infinity blade 2 looks better than anything on the 3ds. Full games are starting to get released. Grand Theft Auto 3, Scribblenauts, Ghost Trick, a bunch of Final Fantasy ports and other square ports, Phenox Wright. All full games, and all on smartphones. Third party games will continue to get ported plus there is a suprising amount of quality titles exclusive to smartphones.
Don't get me wrong, smartphones are still behind, but smartphones get upgraded every year, where as dedicated handhelds go through 5 year cycles. Soon enough smartphones vs handhelds will be similar to gaming pcs vs consoles. If you want absoultely the most advance gaming system you will be getting a very expensive top of the line smart phone. Handhelds will be for those who want a simpler and cheaper way to play.
The only current problem with most smartphones, is that touch controls are currently awful. I firmly believe the smartphone industry will solve this issue one way or another as games are by far the biggest revenue generators in app stores and this limitation is a pretty big one that ruins the potential of plenty of genres.
