They maybe be due if you believe they run everything based on chance, but fundamentally Nintendo is stronger than ever in handheld space. They are coming out stronger this generation than they did with the GBA-DS transition. They have proven time and again they understand the requirement that you must have in a portable device that their competition has constantly failed to grasp. Whether it be costs of games, the device or battery life, controls, heat dissipation, durability. Of course as per M.O, the first one out is going to have some nagging, non critical flaw.
Toss in the fact that Sony their chief and only potential rival has no idea what it want to release as the PSP2 (Is it a phone? A game player? No! it's an Ericsson!) means nintendo once again steps in the dedicated gaming arena effectively unopposed unless you count the multifunction devices that can play tic tac toe at a minimum as gaming.
The the gamer, the good times will continue to roll for handhelds.
PS. Unclebob: You got a couple of nuclear batteries extracted from pacemakers or something? or does nintendo have them?