I still think VMU's were on to something.

Lets say you make a console, and have 2 types of games: full console games, either on disc or downloadable (basically whatever games that have graphics too demanding to be played portably), and smaller less graphically sophisticated games. You can play the small, micro games on the console like XBLA/PSN games now, or transfer them over to a handled device and play them on the go. Think of something more like a PSP than a VMU. They could even have the games scale graphically depending on where you are playing it.

For me this solves the biggest problem with buying handheld games, which is that I don't always want to play them on the go, and its uncomfortable to play them, hunched over, in my own home when I could be playing a console game instead. I do, however, love a lot of handheld games, and I play a ton of the smaller XBLA and PSN games. If all handheld games also worked on the home console and could transfer back and forth, that would be the best of both worlds. PSP's are getting there, and allow this functionality with PS1 games, but they should really do it with the entire library.

Maybe its a setup that would only benefit myself though. Everyone else seems to be fine with playing games on their phones and handhelds in their homes. Its always bothered me though, and I'm the kind of guy who has always bought Nintendo's GBA/GB adapters for their home consoles.