Digital distribution is completely obvious for the next handheld IMO.
What I am curious about - it whether they need a new handheld at all, or whether they can just release some simple add-on for the DS to allow all of this.
Re: this motion control - it would be pretty easy to create a housing that a DSLite could "plug into" (via the GBA port) to provide full motion control.
I really can't see if being that useful - as long as the screen is attached to the device itself. If it is used as a "Wiimote" for the Wii, or connected straight to another TV/display device... that has potential.
(its hard to look at a screen, that you are moving/twisting)