Why release it this year? The DS should have another year or two in its belt. Or is Nintendo more interested in getting the iPhone audience
They are on the fourth DS revision and they don't have a lot of big DS games planned except for Golden Sun 3, and I don't know if that is really a "big" game in terms of how popular it'll be in the west. Gameboy Micro, the third revision of the GBA, was actually released about a year after the DS. I don't think they will drop the DS, but they should be getting something out there since I think the DS is slowing down and they shouldn't really be willing to give up that ground to Sony or Apple. The DS2 will probably be backwards comparable anyway.
And if the tech is where they say it's at, I wouldn't be surprised to see the DS2 getting more support than the Wii. I'd even say that they'd probably move DQX to the DS2 if the timing is right.
even if the psp or psp2 specs are better, this means we are finally gonna have nice looking games on a nintendo handheld.
I hope you're talking strictly 3D.
you say this but a lot of DS games, even the ones that play like 2D games, are 3D and look butt ugly. Most of the Nintendo games are even 3D like NSMB, Zelda games, Mario Kart, Metroid Quake clone, StarFox, etc.