You're right. Nintendo's new system is tanking horribly. It's only somewhat more powerful than Sony's previous-generation effort, has almost no good games and a 'gimmick' that supposedly adds nothing to gameplay, and is going to be demolished by an upcoming competitor with a stronger lineup that is orders of magnitude more powerful than it. This new system also has the benefit of maintaining the online accounts people have become so attached to.
Yes, the 3DS is so screwed when the Vita comes out.