I'm inclined more and more to think (I don't spend too much...er..ANY...time on handhelds anymore) that the DS was more reactionary than anything to the possibility/likelihood/definite that Sony was eventually going to put out a handheld. I'm not saying that this is necessarily a bad thing, that's just my sense of it all. It really is the "third pillar" comment that makes me think that way; to me, "third pillar" means, "well, if it doesn't work out we've always got GBA...and then 'GBE'."
Honestly, the GBE's release will depend on the continued success (or unsuccess) of the other handhelds. If PSP fails miserably in the US, and continues to perform not-so-well in Japan, Nintendo won't have to update diddly squat. Look how long the original Game Boy lasted - grey, then colors, then pocket, then GBC.
Bingbang, I hear you on the games problem, with regards to the non-hype of Nintendo. If DS and Revolution are so revolutionary, and are going to be ridiculously impossible to copy in terms of gameplay innovation, why not tout everything, all day long? New Super Mario Bros. for DS, you say? "Oh, by the way, here's 20,000 new screens of that game, a super cool commercial, and some other info that we've given to online sites/game mags"...is what Nintendo should be doing.