I agree completely. Nintendo should just stick to their plan, and let the others go their own way.
However, I very much hope that Reggie has a plan ready, if they try to get some sleazy lawyers to circumvent their copyright on the new controller interface. I really really hope that Nintendo has learned something about past "copyrights" after seeing all of their previous inventions being ruthlessly copied by the others. I really don´t know much about copyright legislation, but if Nintendo has done all in their legal power to make it near impossible for the competition to steal from them again I am indeed very happy for them. They were making a big issue about not showing the new controller for a long time for fear of the copy cats!
Aside from that, I think that more and more people will look over to Nintendo´s DS because Sony´s plan of putting all kinds of non-gaming related media on the PSP will largely fail! Various websites may claim that Sony is selling the PSP in huge numbers, but unable to prove it. While Nintendo can prove they are actually doing so! If anyone is near the 10 million mark here it is Nintendo - NOT Sony!
I think people see the PSP as a nice little handheld with beautifull exterior and everything, but they don´t see as much fun in it´s games as they see in the games over on the DS! I really think that people everywhere see that difference! So Nintendo has hit the jackpot because they know much better what makes people who play games happier!
One of my friends wanting to buy a new handheld for his daughter, just dumped the PSP in favour of DS! He complained to me for weeks on end that there was no games coming out for it worth playing really for longer than a week or so (just like I had already told him there wouldn´t). Which really didn´t warrant shelling out 400 bucks for something which won´t last! He will buy a Pink or Blue DS with Nintendogs tommorow for her! It is twice the fun (if not more) and two times cheaper!
With him being a die-hard Sony fan for years, it comes as a total surprise to me that he made that choice. I never thought he would listen! But I assume he heard enough about the bad sales numbers for the PSP, and the dismal launch line-up, lack of new games, to be convinced that what I said was right! So Sony can brag about their so-called success with the PSP. I just think they are empty (gaming-) barrels making a lot of noise!