The only thing keeping me from the newest 3DS is my lack of $200 I can spare right now. They have great games, but $40 for a handheld game is just too much in a market where simple games are $1 to $2, and big content us usually $10.
That and the fact you just can't charge the same $40 for downloaded games when the same games cost $40 in their hardware cartridge versions. There is no impetus to spend as much for a game that is only there as long as Nintendo feels like providing it.