It's more like the DSi.
That's the one I was thinking of, but I couldn't remember the name.
As for compatibility with DS and older 3DS games, I can't imagine they'd drop either. Backwards compatibility woth DS games should be easy and making a 3DS that can't play 3DS games is stupid.
It's hard to say. This feels like a Wii->WiiU iteration upgrade. On the other hand, this could be a stopgap before they think about introducing their new handheld because they're waiting to integrate their next console with their next handheld, which they've talked about in the past.
What I want to know is whether 3DS games going forward are only going to be able to be played on the new machine or both.