Yes, but as this article and many others have discussed; that number is shrinking. Gamers still exists, but you don't make billions of gamers. You make billions of consumers as a whole, and convincing people to buy yet another piece of hardware to do something is a hard sell. "I could just use this thing I carry with me everywhere," or, "I could buy a 2nd dedicated device that only does games (well)"

I'm aware the DS/3DS/etc do more than games, but anyone that uses the DS browser and thinks it's good is a liar.

I didn't reply to your first point. I'm not saying touch screen games are the dominant type, and neither is the article. The article is asserting that's the way things are going unless we get a monumental shift in gaming, which doesn't seem to be coming based off current announcements. Both of us are asserting: "Nintendo is ignoring the sea change in the world and coasting. This is a recipe for disaster."