I've done a fair bit of research, and i know nintendo are pumping out versions of the ds every 5 months or so but this is more like a DS2.
The reason its currently called the 3DS is because it will incoperate 3D visuals without the need for glasses, this can be done in a number of ways, dont expect the pixels to fly out of the screen though its not like that, more like adding depth to the ds like looking into a box.
I'm pretty sure this has been confirmed by Nintendo and it will be shown at this years E3 event as well as being playable.
As for the specs, its not just a DS with 3D, no, a number of reliable sources have said Nintendo has given The Pokemon Company (Game Freaks) a Developer kit of this new model, it has high powered graphics (Game Cube) and uses a graphics engine by Nvidia, also before 3DS was released i seen on a games site i usually visit that a couple 5th generation Pokemon were shown on a Japanese magazine so it all rather ties in together.
Features are to be roughly like this:
Dual Screen (3D)
Motion Tracking (Like Project Natal, which will probably be used on 3DS for tracking your head)
Increased battery life and wireless range.
DS,DSi Backwards compatibility.
Gamecube/Wii graphics power. (For those who never owned these its like ps2, first xbox graphics)
Screen is smaller than DSi XL but larger than DSi
Screen is made by Sharp who currently sell a number of 3D Mobile phones.
Built-in accelerometer (like the iPhone/iPhone touch)
2 Built In Cameras (front and back)
First HD Gaming from Nintendo (this at the moment is still a rumor and it is not known whether it is with both screens, somehow i dont think you can make a small portable screen even 720p hd so chances are it will be wii's hd 480p)
its speculated that it should be out by late 2010 early 2011.
Pics....
(There is a white version it is closed up and it could probably be fake and i can't find a good enough picture of it so I'm leaving that out, or perhaps the inside of the console is black and the outside is white ? look closely at the second picture around the edges)
Try not to pay close attention to whats actually on the screen, these photo's officially from Nintendo and others are probably of non existent games or games still to be made and are most likely only for graphic representation purposes, on the other hand they might be the real deal.
The pictures are also prototype pictures, so looks may change, but from what i've seen with Nintendo its just the name of the console/handheld that changes, examples: Ultra 64 - Nintendo 64, Dolphin - Gamecube, Revolution - Wii.
Video (don't know if this is from an official Nintendo source or not but this is
Apparently what its going to be like when you play it, obviously though the handheld its played on is Not the DS2/3DS.):
http://www.youtube.com/watch?v=v_P4gyjf5tQ
I've got a thing for the Nintendo DS although it has many shitty third party games like its big brother Wii it has many awesome games.
i recon if Sony doesn't come out with guns blazing on a PSP2 at this years E3 i will be buying this when it is released.
This leaves me a little puzzled however, if Nintendo are going to announce this at this years E3, if the specs and rumors are true then this thing is going to be as powerful as the Wii, its basically a gamecube with motion sensing and over 10 year old technology for a home console so perhaps a new Nintendo home console will be premiered at this years E3 ?
3D seems to be the future, 3D Movies, 3D Games (PC/PS3 *This summer*) and 3DHDTV (try saying that after a few glasses of wine or even worse
Three Dimensional High Definition Television) it looks like 3D is here to stay.