I'm not interested in 3d, but from what I remember, the tech Ninty uses can't exactly be scaled to a tv without major downsides. Of course I think both companies are rushing as well. Both companies are rushing to put as powerful hardware in their portables as they can and I think they both will be ahead of their time. If that is the case, then it won't help them. For one there is battery life. Ds and Psp were manageable, but tethering will be much more of an issue.
The 3ds has 3-5 Hour life. Unless PSP2 has a better battery life then comparable times or worse will be experienced. It's like what was said about laptops. I have one and it lasts about an hour. Two if all I am doing is reading. If I was to play games, then battery life drops fast. Therefore with more powerful handhelds, battery life expectancy drops and mobility is hampered. At that point you may as well play a console unless you like being tethered.
I bought the gimmick for the games, not the other way around. The gimmick isn't what sells me, the games are. Why do ds and wii games feel they need to use the gimmick. I love the Phoenix wright games, but I also played it on the wii and liked it better then cause I could see it better, and anyone could see it didn't rely on a gimmick (for either system) because it originally didn't even have a gimmick. So Phoenix wright is my favorite ds game and it had an improvement when ported from the ds to wii though nothing was changed. My eyes also thanked me.
3ds will sell better. But sales don't mean it is inherently better itself. The wii is the biggest seller this gen, yet most complaints stem from the fact that most games on it are shovelware. Even the ds has more hardcore games than wii. Overall, I think PSP2 will have better games, but I wouldn't count out the 3ds. If as many good games come out as they say will then I see a fierce competition. I still think battery life will be a downside for both though.