I like to think of it as a larger screen that happens to be foldable to make it smaller.
In any case, this thing is supposed to pack more power than the N64 so the PSP isn't without any competition (even though the DS is technically not aimed at the same market niche as the PSP).
There's one thing I both like and not like about the DS. The dpad. It looks like they've changed it, which is a good thing.
Unfortunately, it still looks really small and now it seems to be more embedded into the contraption. I hope that thing isn't going to be not responsive enough.
However, I'm glad that it finally has at least as many buttons as the SNES.