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The reason why I bring up Animal Crossing is because you are so focused on why would anyone choose hand held gaming over console gaming on a HDTV with surround sound.  Just look at its sales.

1 Animal Crossing: Wild World DS 2005 Simulation Nintendo 2.43 3.24 5.33 0.84 11.84
2 Animal Crossing: City Folk Wii 2008 Simulation Nintendo 1.76 1.00 1.32 0.36 4.44
3 Animal Crossing GC 2001 Simulation Nintendo 1.92 0.16 0.99 0.09 3.15
4 Animal Crossing: New Leaf 3DS 2012 Action Nintendo 0.00 0.00 2.07 0.00 2.07

New Leaf has almost surpassed AC on GC sales with only being available in Japan.  Animal Crossing is the perfect series to counter your point of logic. 

You asked earlier "Who the hell is willing to invest hard-earned money in something as absurd and counter-productive as gaming on the go? If you have an HD console or high-end PC and a nice 55-inch plasma, where do you need to go in the first place? Do you crave the 5-inch gaming experience?"

Do these AC fans explain any of those questions?