The CycloDS comes with a UFO dongle with a USB jack on it which you can plug the flash cart into the dongle and then plug it into your USB port on your PC to flash the firmware. So you won't ever need a DS system to update at all. THAT is why it is an extra $10.
its an extra $10 because its the only flash kit to date which can work in dsi-mode. you are also paying for the cyclods name and the promise of fast updates. let us not forget when cyclops demanded that dealextreme pull the $36-ish priced cyclods kits they were selling. it is easy to argue that its an additional $10 because cyclops is a greedy team that wants money quick instead of the same amount over a longer period of time.
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You can also play SNES and GBA games with the CycloDS by just simply using homebrew software. You don't need a CPU to play these old ass games considering the actual systems had like a 16Mhz CPU in it. The DS can handle it fine with homebrew.. if it can handle DS games it'll handle some old 8-bit game.
perhaps you don't fully understand how difficult it is to code something that "emulates" something else in a limited hardware environment such as the nintendo ds. that limited cpu has to emulate all aspects of the original system which was spread across dedicated hardware. your comparing it based on bits, when this has little to do with it. look at stellaDS and how slow it runs, surely you aren't comparing atari2600 to 8bit era titles? also, as you incorrectly stated, you can not run gba games on the cyclods using homebrew software. as for snes, snemulds is an abandoned attempt with hit or miss compatibility (and sever layer issues) where the scds2 sfc emu is an optimized port of snes9x.
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Why the hell would someone have a DS Lite if they already have a DSi XL? 90% of people either sell or trade in their old system towards a new one.