I think it looks very good at this point. I'm only worried about the feel of the controls, because WarHawk's controls felt too delayed to me; I hope the controls in StarHawk are more responsive.
I'm not sure your point only applies to PCs... If you claim that PCs cost $800 or more, don't consoles as well? Because you have to buy the console, for one; and you can't just ignore the price of a TV. Sure, most people have a TV already, but most people also have a monitor or a TV that can be used as one; which would lower the entry price of a good PC. In other words, whether or not a PC, or a console, costs more than a used car depends on the situation, so it can't be counted as a negative for only PCs.
I think Nintendo's strategy of using older technology also had a good side: reliability. My parents bought me a GC at launch, and it still works flawlessly today, even with all the abuse it went through (children using/hitting it, dad trying to smash it with a hammer, etc.). Besides the games, reliability is the reason I love Nintendo products.
The only thing that worries me is that the rim around the bottom screen touched the top screen when the 3DS is closed. I know that this couldn't have been avoided though, otherwise we'd have cracked, not scratched, screens. And also, this issue can be easily fixed by buying screen protectors, so it's not a problem.
1. DS games don't look bad on the 3DS, the picture quality is just not as sharp as it would be on a DS. That said, you can change the image to display in its native resolution, which would make the image smaller, but improve the quality.
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