"Atari Founder Dismissive of Nintendo DS" huh?
I actually thought Google News glitched out and linked me to something from February 2004 when a considerable portion, if not the majority of the gaming media took it as common wisdom that the Nintendo DS would be a pathetic kids only stop gap system which would alienate itself from third party support, live a short, troubled life span akin to the Virtual Boy, and would surely be eclipsed by the PSP with its "mature" userbase, "sexier" hardware, and "mature" games.
Then the system actually game out, enjoyed some of the best third party support a system has ever had, and has been showered with worthwhile, often excellent games throughout its lifespan which continue to find uses for the dual screens and touch screen which critics swore would lose their initial gimmick appeal within a year.
Most surprising of all, Nintendo DS actually managed to attract a lot of new adults and retain young adults who who grew up with the Gameboy line (The GBA itself in 2004 had slightly over a third of its userbase being 18+ if I remember correctly, more than was generally imagined for a "kids" system), a demographic which was presumed to be the exclusive domain of the PSP with its more "hardcore" sensibilities.
Incidentally I've seen just as many small children playing PSPs in public as I have DS systems, while I've seen more adults out on the train, college campus, or in waiting rooms with DS systems than PSPs. That's just my own personal observation so your mileage may vary, but it generally corresponds to the numbers NDP and Nintendo have put out over the years.
When it comes to the 3DS and the iOS platform making it "irrelevant", I say fat chance. Most of the people I know or have talked to who use their iOS device for games would have NEVER been in the market for a dedicated portable system to begin with, no matter what its price or features or titles.
There is some definite overlap, but when people point to declining DS sales and rush to credit iOS with having "killed" the present Nintendo DS, they seem to forget that the DS has been a lame duck platform with its successor already lined up and known the the public for the greater portion of the year. Its a six year old platform which aside from being as close to achieving total saturation as a game system could hope for, is in the waning phases of its life cycle.
And again, as the iOS isn't a "game system", those devices can well wildly (as they surely will) and have swarms of owners playing games on them without causing much displacement in Nintendo's userbase, which was the case with the PSP.
A lot of people presumed the success (or at least the viability) of the PSP would naturally coincide with the "downfall" of Nintendo's portable empire, yet the PSP's audience more added to the portable gaming marketshare pie than it stole away Nintendo's slice.
I think we're going to see the same thing with the iOS vs. the 3DS.