I'm normally somewhat "in favor of" piracy. I can't say that I always like it, but the real "rights holders" always tend to fall short sooner or later, at which point it's nice to still be able to get something from someone who truly appreciates whatever it is that we're talking about.
But this is much too soon. Yes, I seem to remember this happening even sooner on the GBA, but not a lot sooner. And what became of it? Lots of piracy. The dirty kind. Pushed by sellers who want to get-rich-quick, and buyers not willing to pay to support the things they enjoy.
Sure, the GBA was willing to take it. But can the DS? Or the PSP? Even if we had a sudden clear winner in this new "handheld war", there's nothing to say that either console would be able to withstand piracy's negative effects the way that the GBA did.
These "cutting edge" pirates are just looking for trophies, and it's just a matter of time before someone takes it too far (if that hasn't happened already), which ruins it for everybody else.
In the anime fansub world, there was this "code" about things that were "unlicenced", meaning that no American company had picked up (and was able to defend) the rights to something. Then one day, in the rush to "be first", some fansub groups actually managed to get a straight-to-DVD anime release that hadn't even been released in Japan yet, and offered it up on bittorrent.
The Japanese rights holders got infuriated, and started cracking down on American fansubbers. Other Japanese companies are expressing interest in the idea of cracking down on American fansubbers, and American fansubbers are trying to wrap their minds around the fact that unlicenced =/= legal anymore.
One group, taking things too far, upsetting the balance, and ruining it for everyone.