Again, if the 3DS was underpowered in that sense (
lol, gimped chips) It wouldn't have the Battery life woes its currently experiencing.
A Power VR solution would have been better? All points to yes, but NGP level? Consider that the NGP was reported to necessarily be
that big due to heat dissipation problems and maybe an A5-like chip wouldn't be ready for the projected launch, specially since the hardware model of consoles and Apple is different
(developers didn't had access to the A5 until it was shipped last March). Maybe it wasn't a realistic option, and the other option that Nintendo was reportedly managing (Tegra II) is still far behind the latest PowerVR chip.
Comparing the 3DS to non Power VR solutions,it doesn't compare that badly imo. Just look at SSFIV vs that Bruce Lee game for the $400+ Xperia Play.