I agree with you, same goes for the original Xbox, it's start off was bad, but look at the 360 now.
Theres no need for anything to be put aside, thats simple fanboy talk because they dont want there platform having a rival of any sort. PSP2 (if made) could very well end up being the new DS of next gen, tables can be turned at any time if its priced right, with a solid launch-line up and major fan support.
Nintendo's rayne in the handheld market can only last for so long, nintendo was dethroned (in consoles), then so was sony (in consoles) , guess whos next in line (in handhelds)? anythings possible.