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Getting back to topic then, I think handhelds have a future, but a more limited one, maybe Nintendo can grind out 50-65 million handhelds next cycle out. That won't be an easy 50-65 mill either, they will have to work their asses off just to maintain at that level. 

But if Apple actually goes through with that pop-up joystick patent ... I think Nintendo is basically fucked.

Doesn't matter what software they have, they will need a miracle in that scenario.

If smartphones start to have the ability to not only play cheap/simple/arcadey games but even more credible, deeper styles of games, then the traditional handheld is pretty much screwed.