There's something about Nintendo possibly releasing a handheld that's significally more powerful than their current home console that seems really odd to me.
I know there's a ton of nVidia hate, but I'm impressed by the Tegra and the Tegra II would, obviously, be even more impressive. I remember reading an article where they pegged the Tegra II as slightly more powerful than the Wii. If Nintendo is going for an even more powerful chipset, I can only imagine this would be a response to the supposed power of PSP2 which rumors have it close to Xbox 360 level of power. Somehow Sony convinced 3rd parties to support PSP despite it's many shortcomings. I like my PSP because it has some excellent software even though I'm baffled as to how Sony pulled their extensive support. Nintendo says they're not competing, but we all know they are. Every cent consumers spend on Sony/MS is not being spent on Nintendo products. If Nintendo can keep costs down (sub-$200 MSRP) and have 3DS be a powerhouse as well, they should go for it. Matching or coming close to PSP2's power basically takes away Sony's one advantage over Nintendo in the handheld arena. Always a good thing.