This.

Yes.

1) Adding a thumbstick will not affect games already being developed or released.
2) It will allow direct porting from/to PSV far simpler and Nintendo doesn't want a repeat of Wii's decline where it has no 3rd party games. So it will still have its exclusive feature, 3D, as well as all the common general games.
3) Due to game porting possibility, this will likely hurt PSV more as it will get less, if any, 3rd party exclusives and those will probably be based off of the lower spec'd 3DS... similar to PS2 era.
4) Only negative is the millions who have already bought. However... most games I've played (non-FPS) don't even use both sticks or the 2nd stick function could easily be part of the touch screen or button layout. So, most games won't be affected and those that will... well, they will have to upgrade. Something portable users have already demonstrated over and over again an strong willingness to do.

Especially if this new layout is accompanied by a new lower price as well. (in a year when this takes affect with a young PSV... its certainly possible to see a $20 price drop or special game bundles)

Yes Yes Yes Yes

3DS sales aren't so hot right now and when Nintendo starts to weaken in its strongest area they'll do anything to get it back on track

No...but Nintendo haters would like them to be true as the rumors are quite suicidal if true. (my opinion)

A redesign would not make sense to me.

Why would Nintendo do this?

It would be like redesigning the Wii and calling it the Wii U.

There are several reason's a redesign would be foolish, especially if the rumored second analog stick was real.

-Developers and publishers would be pissed. This new hardware would mean having to rework dev kits. Also their prior software would be obsolete cutting sales and effecting the image of the company.

-Consumers would freak, all of the millions of guys who bought 3DS would now have a useless paper weight. Since the new analog stick would render the original obsolete and unable to play new software.

-Announcing right before Christmas would kill off the 3DS before it even had one holiday. Also recent improvements in stock and sales would be cut.

-WiiU would fail at launch. No gamers would invest in a console when Nintendo abandoned the 3DS so easily. If Nintendo thought a price cut was damaging a redesign would kill WiiU. Even I the most die hard Nintendo fan I know wouldn't likely buy one day one.

Now if you don't think the analog stick is going to happen and are thinking 3DS:Lite. You'd still face many of those issues. Consumers who bought the first model would feel betrayed. Sales would drop like a rock this Christmas.

-Also a new model would loose Nintendo more money. If the current model with a four hour battery life and 3D screen and such cost a ton to manufacture and they are loosing money on every unit. Then this new model would either have to be way cheaper technology or they would be loosing even more profit on every unit.

What do I think is going to be announced?

-Nintendo already leaked that they are bringing out the big guns. Apparently one of the biggest software titles in years is supposed to make an appearance. I'm not sure which title this could be but it would make sense.

-Alongside that new title, I fully expect Nintendo to have another one or two first party titles. Its been over a year since E3 2010 and Nintendo has had a lot of time to produce new software. They may choose to unveil it at this conference rather then wait till E3.

-A list of new software coming from third parties will obviously be on hand as well. We know Assasin's Creed got cancelled but I talked to UbiSoft at PAX and was re-assured that they are still hard at work on 3DS. I'm sure Nintendo will have something to show.

-New software features like video chat, I bet these new features could be big selling factors.

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For all those expecting more then just software. Nintendo makes these big press announcements often and rarely do they announce new hardware. Chances are this press conference is to combat the Vita's launch and with Sony promising 18 unannounced Vita titles at TGS I'm guessing this is Nintendo's pre-emptive strike.

I don't expect to see anything more then software. A new accessory or two might also be present but I think that this conference will likely focus on software!

It's just propaganda to slow down 3DS sales again. No surprise these "rumors" came out as 3DS sales picked up. Why would people buy 3DS when a newer version was to come out.

What's more sad is people claiming they will drop the 3D.....If that was the case, it wouldn't be a 3DS now would it? Ya Nintendo is going to scrap the whole idea of 3DS. People please your heads, I cannot believe the utter hatred for Nintendo.....disgusting!

Good Question

You my friend IS THE GLIMMER OF HOPE here in VGC; as you hit the nail on the head perfectly!!!!  If the 3DS was designed by a "X" developer everybody from the press to fanboys will be praising it like it was the solution for global hunger!!! (my opinion)  Sorry, but once Nintendo really starts to release quality software the 3DS concept is gonna be succesful.