The DS is technically inferior to the PSP, but the DS is outselling the PSP by a lot. I personally don't think power and graphics is deciding this next console race. It's going to be all about the games.
I do not believe "superior games" is what put the DS ahead of the PSP in terms of sales. There are definitely other factors to consider, and in my opinion, these factors have more wieght than even game selection. This was Sony's first foray into the HH market, they weren't looking to dethrone Nintendo this go around, they were looking to get a firm foothold, which they have done. Nintendo had the advantage of going into the HH war with 95% of the market share. Their share has gone down considerably, to 60% I do believe, but I can't provide a source for that. That's not even to mention the difference in price between the systems, which could have played a huge part in the sales difference. All in all, you can't say the DS is ahead in sales because they chose gameplay over graphics, there are too many other factors to consider.
Besides, power and graphics didn't decide the last console race. The PS2 was the least technically capable system out of all three, and it sold more than it's competition combined. But to say the PS2 outsold the other two systems purely because it had better games is not looking at the whole picture. DVD functionality, backwards compatibility, one year system launch headstart, controller ergnomics, online capability, and yes, key exclusive games (Final Fantasy, GTA, etc.) all played a part in the decision making process gamers went through when deciding whether or not they should buy the console.
The Xbox initially did better because it was "graphically/technically" superior... the game selection wasn't there... but the hype was (IMO).
The Gamecube actually sold better than the Xbox initially, but by the end the Xbox sold about 3-4 million more units than the GC. The game selection wasn't great on the XBox to begin with, but strong third party support kept the promise of AAA games in the future, so buying an Xbox earlier on was more or less an investment in good games to come, not merely a choice of what system could push the most polygons.
But I digress.
Ross pointed it out, and put it, better than I ever could.
If this race is all about gameplay, the other systems have just as much a chance as the Wii. If the PS3 gets some killer apps, people will be glad to spend 600 just to get those awesome games.
Choosing an Xbox 360 or a PS3 over a Nintendo Wii is not a choice of graphics over gameplay.