And holy shit is this game suited for a handheld. I would even say I prefer it on the 3DS than on the Wii or even in 1080p via Dolphin just for that reason.
I wouldn't agree with this overall. The game is gorgeous in Dolphin (plus you get a fast forward button!) and the music demands a good sound system, but I'm finding side questing is much more enjoyable on the 3DS.
I still wish they had scaled back the exp gain, but I'm having a ton of fun with this version. It's astonishing how well it works as a handheld game. It makes me pretty excited to play X on the Gamepad.