Ni no Kuni and LovePlus are the only ones to use it.

That also comes from the system specs. The PS1 had plenty of ROM, but the system wasn't as powerful overall as the DS.

I remember Satoru Iwata talking about the 3DS having a TV OUT feature. HD/3D video output from the 3DS a possiblitly? Maybe, although I'm not sure how much business sense combining Home Console and Handhelds into one machine would make I do believe this is where they are headed.

It has nothing to do with combing home console and portable console segemtns into 1 unit and more to do with offering 3DS owners a way to watch their games and movies on a bigger screen a la the PSP.

Though that does make much sense.... I'm still sticking by what I said.

2 different expriences that cater to different audiences with some overlap.  If you combine both, you ultimately reduce the exprience of one or the other so much so that you alienate the audience. 

They fare far better on the market as seperate, though connected, dedicated machines. 

An El Camino is both a truck and a car but it's neither as a good as a real truck or a real car for the functionaity of a truck or car.

It will have no space since psp2 will only has digital content

storage issn't the cause of the grainy textures for either, the reason the textures are grainy is due to their texture filtering method, both use what is referred to as point or "nearest neighbor" which simply uses the color that fills the majority of the space of the pixel after adjusting for the new perspective, you could take a high resolution texture and with nearest neighbor it would still look grainy when not viewed at the proper distance and angle,though the grain texture would become increasingly fine with resolution,

the alternative  is using a linear filtering technique  in which an array of pixels from the textures are used to develop the appearance of any given pixel on the display, allowing for a much smoother appearance, though if the texture isn't high enough resolution it will become a blurry mess like many games on the 64, these are also more resources in tensive

these techniques are combined with mipmapping (and the enhanced forms) to reduce shimmering and aliasing

basically if you were approaching infinitely high resolution textures output at approaching infinitely high resolution point would be just fine as everything could simply be 1 to 1 and the aliasing and shimmering would in theory be a non-issue

I have always wondered why carts were such a factor for the N64 failure against the CD Playstations, yet it's okay when concerning handhelds still.

because solid state technology has become much closer in cost to optical media in the past 10 years, back whent he nintendo 64 was running its course games where at least 20 dollars more expensive than thier ps1 counterparts and they held a fraction of the storage space (650 MB per cheap disk vs 64MB tops per expensive cart) but since then rom prices have gotten far, far lower and storage capacity far far higher

Even though solid state technology will never touch optical media on a per piece bases, the difference has become less consequential, Ask yourself 10 years ago if you wanted to back up or move data on a hard drive physically, you probably burnt several cds, today you probably use solid state like a sd card since you can get several GBs of storage for a reasonable price