Nintendo sees it as better since it slightly slims the dsi and maybe reduces the weight a bit and for them it is another added benefit in that like the wii they can sell you games that you can download to play on the dsi. I would assume they'll do an indentical service as with the wii with it having former game boy, game boy color, gba and maybe some other hand held games like ones for the lynx, game gear and others.
I wonder how long it'll take the folks to figure out a way to hack the dsi so they can do some of their own homebrew to run on it, stuff like linux on the dsi, media players and other things. Like you can get quite a few programs that run on flashcards on the ds today.