Nintendo to Drop D-pad
pluke writes "Computer and Video Games reports that Nintendo plans to drop the humble d-pad from its next console along with the classic A and B buttons. Nintendo pioneered the d-pad on its 80's Game & Watch handheld games system."
Smaller space constraints
Better tactile feedback(push, click)
Better for navigating 2D environments (menus)etc.
I know I generally use the d-pad just as much as the analog stick on various games. It would be rather inconvenient to see it go.