I realize that, but Netflix streaming and SD card movie playback are basically free additions since the hardware will already be capable of it.
The 3DS will have wifi and if it uses a Tegra level chip, it will have the processing and multimedia capabilities to playback/stream movies.
I don't know if you missed the article where Iwata calls Apple their biggest threat (in reference to the iPhone/iPodTouch/iPad), but that comment alone makes it seem that they are not trying to make the DS brand into an iPhone, but they could allow certain things that the hardware is capable of since people are more likely to carry around a device that can do more than one thing.
the 3DS
will play games (it's primary function)
will have cameras (at least 2 cameras - I'm hoping for 4 though<3D pictures>)
will have Wifi (full internet capability with <flash support?>)
will have an SD card slot (for storage of pics, game saves, audio, etc etc.)
will have a mic (recording sounds and voice commands)
will have a touch screen (hopefully multi-touch and on both screens)
will have 2 screen (supposedly with no gap, which means bigscreen in bookmode)
To have all that(wifi, multimedia, possible bigscreen in book mode) and not think about streaming Netflix from the start (think 3D movies on Netflix Streaming!!!) would be stupid. That would be a huge selling point and trump all of Sony's efforts without even breaking a sweat. It would be the 1st fully capable Netflix3D device which means they would get free advertising to the millions upon millions of current and future Netflix subscribers. Something that would cost your 1000's $$$ to do with a PS3 or set-top box since you need a 3D TV and expensive glasses.
for a little more than the cost of the glasses alone, you could have your own 3DS that works out of the box.
to have all that (SD card slot, multimedia, possible bigscreen in book mode) and not allow multi-format media playback would be stupid. We're talking mp3, mpeg, avi, aac, mp4, or whatever other media formats are out there, otherwise you would just be crippling your own hardware for no reason. Allow it through an app download where the buyer pays any licensing fees for a specific format, and there you go. take movies like the digital download copy of their DVD/BRD movies and play them on the 3DS.
to have all that (cameras, mic, multimedia, touch screen, sd card) and not allow me to film movies(in 3D?) & take pictures (in 3D) using my 3DS, edit my movies/pics on my 3DS and save them to an SD card, upload them online where other people can check them out and use their 3DS to also view them would be an incredibly wasted opportunity to put 3D in everyone's hands including the most casual of casuals.
For Nintendo to have the capability to do all of that out of the box but not plan for the 3DS to be that functional(sufficient RAM & processing power) would make the device antiquated. We all love our portable game machine, but if you want me to remember to carry it everywhere I go and for it to become a piece of everyone's daily life in someway so that you eventually pick it up to play games every once in a while, then you need to give it more purpose. a 3D picture taking, 3D video filming, 3D media editing, 3D movie playing/streaming, wifi enabled internet surfing portable game playing device sounds like something I could use everyday even if I don't always have time to play games.