Wrong, I'm sorry you can't blow up a DS screen like that, the game looks FANTASTIC on the standard size DS screen. So you are, once againb, WRONG.
It doesn't look bad, but it doesn't look great either. There, you both win! Or lose, I dunno.
As someone who's played a fair amount of PSP, it's sometimes hard to go back and look at the "high quality" graphics on DS and feel good about it. Most of the time, the gameplay makes up for it, so it's not that big of a deal, but it's not unnoticeable either.
IMO the best DS looking games are the ones that don't try to push realistic 3D graphics. New SMB, for example, looks gorgeous.