It took more than 10 years for the TurboExpress to be beaten on tech specs by another handheld, which was the Gameboy Advance. But how much of a gap is there between the two? Could the turboexpress have competed with the Gameboy Advance had a slimmer model with two AA batteries been released in 2000? After all, that PC Engine Street Fighter II game was 20 Megabits, which compares favourably in size to the GBA's Final Fight One, for example. Or is the gulf too wide for the TE to exist today?
. As always, I think it would come down to the library of games. If we sideline that discussion, however, and just consider the tech specs of the handhelds.... well, I think an "upgraded" TE would definitely hold its own (for standard 2D games). Of course, when we see the success of GBA & DS vs. PSP, we see that other factors are more important in determining the success of a handheld in today's market.
I think the market is big enough today to support 2-3 handhelds (call me crazy). By this, I mean that even third place can be profitable for a company (they'd have to turn a profit on the hardware, though, and not suffer a loss as Sony must have taken with the PSP). I've brought up this sort of argument in the past when we were discussing Gamecube (and how it actually was profitable for Nintendo, unlike Xbox for MS).