Or will the only difference be that both screens are touch sensetive? I hope DSi games will be less pixalated personally.

i doubt there will be many DSi games at all, i mean they have already sold 80 million DSs. It will probably just be for optional content. I do expect it to spread much faster in Japan and some Japan oriented titles may use it.

Have you found more than one source that says both screens are touch sensitive? I don't think this is true. At least, there is nothing about that on Nintendo's website.

No. DSi = DS with added functionality. It's not a new system.

This is not a graphically updated DS just the features (sound, screen) of it are and the added internal memory and cam and SD card slot

I thought it was only one touch screen. and Kenology is right.