Smartphones & tablets have rendered high-end portables obsolete.
Until they get past touch based controls, I'm going to disagree with you there. But I openly admit I may be in the minority with that opinion...
You can use a PS3 controller with an Android phone right now, they added support for game controllers in 4.0 ICS. I think it is kind of ridiculous to tote both around but the option is there.
Kids are the main market for portable gaming outside of Japan where public transportation is ubiquitous. Nintendo has a lock on them thanks to Mario, Pokemon and their other mascots. Sony is making portable systems for adults which is to be lauded but their market has consoles, computers and many other places to game already. They also don't have the same travel time to use for portable gaming that a younger audience will.