Exactly, Nintendo have proven to Sony over the past generation graphics and power isn't everything, even Apple have taken the same route.
I take my had off to Sony the NGP does look fantastic and it will be a purchase for but do we really need ports or cut down version of popular PS3 games??? Games many of us have played and completed less than 5 years ago. Some have already noted they rather not have a portable PS3 and just play them on the bigger screen.
NGP vs. 3DS is pretty much EXACTLY like PSP vs. DS back when they came out.
A friend got a DS on day one, another friend got a PSP on import around the same time.
The DS looked kinda funny, was based around a "gimmick"* and was much cheaper than the PSP. The games also looked "okay" but nothing you wouldn't expect really.
The PSP looked amazing, was just a "standard" handheld, and was quite expensive. I remember playing the original Ridge Racer and quite frankly I was blown away by the graphics.
My point is even though the NGP on paper trounces the "gimmick" based 3DS, you never know what is going to happen. If you'd told me back then that the DS would go on to sell way, way more than the PSP I wouldn't have believed it for a second.
The power of the hardware doesn't make a difference. It's the games that are released and how much mass market appeal you can generate that does. The DS Lite and Wii have more than shown that.
Plus never underestimate what a hardware redesign, price drop and Pokemon/Brain Training can do
*I would argue that even the touch sensitive back to the NGP is more of an additional control method instead of the primary buttons based approach. It doesn't "define" the console.