DS games aren't though, at least
Nintendo explains to Eurogamer that software developed specifically for the freshly-announced DSi will be region-locked, meaning the handheld will only be compatible with DSi software released for its intended territory. This confirms that DSWare downloadeds from the DSi Shop will only work for compatible DSi hardware, which is really no suprise given that online games are often localized for different countries:
"DSi is region locked because DSi embeds net communication functionality within itself and we are intending to provide net services specifically tailored for each region. Also because we are including parental control functionality for Nintendo DSi and each region has its unique age limit made by different independent."
Wireless internet browsing itself, as well DSi photo exchanges, remains possible no matter the region the DSi was released for. More troubling is the strong implication that card-format games developed exclusively for the DSi will also be region-locked. We can take solace in the fact that no DSi games on card format (or rather, games which require DSi-exclusive hardware features) have actually been announced at time of writing.
The current DS models on the contrary are region-free, so import DS game cards will work without a hitch on North American DS hardware and vice-versa. Undoubtedly this has added to the appeal and convenience of the DS platform for savvy importers, so it's disappointing to learn that this may longer be the case for the otherwise slick new DSi. To be sure, the DSi is backwards compatible with DS games, and their operation on the upcoming handheld thankfully remains region-free.