Well, Considering that atleast 1 CPU is running on an ARM9 proccessor, I can confidently say this will be 3d capable, as Tapwave's Zodiac runns on the exact same thing. However, the Zodiac also has a dedicate ATI Imageon graphics card. Besisdes, Sony has been releasing specs lately that the PSP's graphics are going to be closer to PS2 more than PSOne. So, I don't think these will be fighting head-to-head. Although I do believe these will both be around $250-$300. Don't flame me just yet!
Nintendo has something up its sleeves. I can smell it. I mean something big. This just released announcment isn't what we've been waiting for, but rather we are all still waiting. Ninty's plans for the DS could be a complete failure, but I doubt it. There's more to this announcment than meets the eye. This DS isn't going to be a quick cash-in. It's going to be THE product that shows Nintendo can innovate, and do it well.
You can quote me, and flame me later down the road. But, Nintendo has much more in store for the DS than we could ever imagine.