Have I not explained in quite thorough detail why the DS is most certainly not fucked in this situation? It's still $240 for the actual package (who's going to buy this thing without a memory stick?!) and the game selection is going to be nothing but ports.
Being priced 60 bucks lower than most people were expecting makes no difference. Plus, those aren't even the North American MSRPs. Those are conversions based on the Japanese numbers. The basic package will either be equal to the amount or more expensive when it reaches America.
Also note that the release date, IN AMERICA for the ds is at 11/22 atm (www.gamestop.com). The psp is is being released in JAPAN ONLY on 12/12. Who knows how long until a us debut (less they said in that article, I didn't really care to read it).
Sony will probably hold off on the American release until the summer. Their only hope is to catch the kids who are filling up employment slots all over the country and lure them into a buying frenzy. That's still not the prime season for a hardware release, and the sales will suffer because of it.
On top of that, if Sony waits that long, Nintendo will have had 6 months to sell the DS at $150 apiece. By that point, they'll probably be ready to drop the price, making that $240 pricetag on the PSP look ridiculous by comparison.