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It's an mp3 and movie player, with internet capabilities.
Throw in that it's (in my "as unbiased as it can be" opinion) the premier gaming system with genres to suit all ages, and a huge range...and you've got a pretty good system.
Nintendo has a pretty good handheld if you're just after a straight up gaming system which is great for what it is, but the games are really aimed at an overall younger audience - it's a very "family" console, which is what nintendo does, and does well. Nice colourful easy to use games with a simple interface.
For a more "serious" handheld for the mature gamer, I'd go with PSP.
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