<div style='font: 9pt ; text-align: left; '>They didn't do it because:
1) battery life of at least 10 hours without 10 batteries wasn't a possibility 'til recently. They did a study a long time ago (was mentioned online a while back) and found that battery life was one of the major deciding factors of customer satisfaction on a handheld. That's why the GB survived but WAAAAY superior systems like the Turbo Express and Nomad died
2) the magic price point is $100 US, and they couldn't make the margins they wanted and include a backlight 'til very recently. It's purely a business model decision and Nintendo is very anal about that, as they should be. They're not in the business of losing money on hardware, particularly in the handheld market where there's no competition. It hurt them in the console market, but waiting won't even affect them in the handheld one, as the sales figures of the little system indicate.
Those are the main reasons, which you agreed on. It's not that they didn't know or didn't want one, it just didn't fit the business model with the technology at the time. That changed only very recently. And it wasn't a poor choice, it's not like their sales for the handheld is bad.....only the PS2 sells better. If they had competition, they woulda done it years ago...</div>
I was there on that fateful day, were you?