With all do respect to this analyst (not that I respect analysts), I'm sticking with my prediction of $179.99. If analysts are supposed to recognize trends, why do they skip the history of handheld domination by affordable Nintendo platforms? This isn't Sony with the PS3.
I used the word incremental as meaning a sustaining innovation but either way to me it means the new device doesn't enable many games that the old one didn't already.
With the DS, the tapping of new markets was evident: mature adults, female gamers, etc. But I would argue that the games that appealed to these customers could have been possible without the touchscreen. Brain Age, Nintendogs - these games could have been made for PSP, and wouldn't be much different. Sure the touchscreen made them more accessible, but it wasn't the reason they sold. What more could you add to 3DS that would enable non-possible games?
So while I agree the 3DS is clearly a sustaining development, the potential to further expand the market exists if the right software is made.