^ Which is exactly why I don't understand what all the hype was about.

Congrats, Nintendo. You've managed to match the performance of a computer that originally cost $300, 11 years ago, with a $180 handheld today.
Considering that the fat PS2 weighs just over 8lbs, and the 3DS weighs 8.1 ounces, we'll say that the 3DS has the same power, with 1/16th of the space. Following Moore's law, which states that the number of transistors on chips in integrated circuits doubles every two years, this should have been possible back in 2008. However, we also have to include the additional weight (and cost) from the two screens, and the built-in controls.
I'd say Nintendo is still slightly lacking behind in terms of hardware. My basic $500 laptop is leaps and bounds ahead of the 3DS, with 320x the storage space, 12x the memory, 3.9x the maximum possible resolution, 0.7x the battery life and an undefined amount more of CPU and GPU power, because Nintendo does not publish enough information readily available on the internet.
I can say, however, that the PICA200 in the 3DS is probably even behind Sandy Bridge's mind-blowingly sucky integrated graphics.