Don't know about you, but I'd feel like a total a-hole just holding my 3DS up to my ears.
lol... this (the form factor) really is a big deal, i guess. you'd have to use a bluetooth headset all the time, and then things start getting really cost/battery prohibitive for the average consumer, especially as the idea in the first place was maximum portability and minimum complexity.
i think i agree that mainstream gaming (there will always be an 'arcade' niche for console-like products) will move away from consoles eventually... and i'm genuinely impressed by some of the great horizons being explored by indie developers on mobile platforms (just tell me Sword & Sworcery:EP isn't an awesome game). but this really hits on the big frustration of the current crossroads in technology. the more portable you make something, the less physical real estate you have for essential things like viewable space, input devices, etc. but the less portable you make something, the less likely people are going to be to spend the majority of their time with it in our current "always-on-the-go" mindset. what to do, what to do...