I saw the pics at gamesarefun.com, and they look surprisingly polished. I didn't think the DS could handle it.
They also say the game's been in development for over a year, and it really does show. IGN has some additional info: http://ds.ign.com/articles/750/750590p1.html
I especially love this part:
"Kouichi Sugiyama will be lending his talents to the game's soundtrack. And all future Dragon Quest soundtracks, it seems, as he took the stage today to say "I will continue making Dragon Quest music until I die.""
This really is a huge get for Nintendo. I wonder if it lends more credence to the rumor that a FF VII remake is on the way for DS?