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Well, this certaintly hurts the PS3's chances of getting it if true.  Considering the day and everything.

If they are considering DS it really obliterates the 2 main reasons it would be on PS3 that people who expect it on the PS3 always talk about.

1) Loyalty to Sony

2) Most upgraded graphics. (Some people claiming that somehow the wii would be downagraded graphics.)

If that's the case the main contenders are apparently DS and Wii.

I don't get Handheld RPGs.

SRPGs sure. The battles are practically made so they can be played one level at a time. But RPGs always seemed like the "play 5-6 hours straight." type games.