Nintendo is re-afirming their commitment to the DS portable line with this announcement. At the same time, they are very clearly trying to re-position their DS portable line as well.
For starters, 3D is out. By this point even Nintendo realize that the 3D feature doesn't get used enough, and it took far too much extra tech to make it happen.
For second, the DS line going forward is clearly intended to be a low-cost alternative to the experience that the Switch provides. I don't believe there is an announced price-point yet, but current speculation pegs it around $150. It could even be less. A year from now, it will be less. With this 2DS XL, they are designing a DS that has considerably fewer features than the 3DS, but with a decently sized screen. They're stripping it down to the essentials, and will be able to produce the hardware for less. Ironically, the 2DS will actually be the best and most affordable way to play DS and 3DS titles if you don't care about the 3D feature. Since it has the same processors as the New 3DS, its going to have access to the same processing power, but with the 3D switched off by default. (which will give most games optimal framerates)
For those worried that the Switch would supplant the DS line, this should help put some of your fears to rest. A budget-priced version of the current DS line is an appropriate and competitive direction to pursue. For those who were hoping the Switch would supplant the DS... sorry.
