Except that the 2DS is actually only one screen split into two, but that is splitting hairs. The mention of hinges and children is spot on though. I have a 4 year old son and he continually opens and closes the clam shell, even when not playing a game. That kind of wear will eventually lead to power issues in the top screen (if you ever owned a starTAC phone, you'd know what I meant). I'm sure he will drop it on the hardwood floor or tile sooner or later though as the weight and bulk of the thing just was not made with a 4 year old in mind.
The lack of a larger screen like the XL alienates the older population (and by that I mean 10+). It's cost effective and that's mainly what parents with younger kids want. I really dont think they care much that the XL screens are 90% bigger than the originals. It's just another option for those who want to play 3DS games. Like everything else, it's a choice... isn't the free world great?!?!
There are very few games that I've played that enhanced my experience with 3D (Kid Icarus is probably the only one). I definitely play a majority of my games in 2D by choice, but once in a while, I do switch it on just to see what the games look like in 3D and I'm almost always underwhlemed. Removing this feature for the 2DS made sense for the cheaper model.