Iwata stated that the downloaded games were not going to be free; they haven't decided how they're going to bill for them yet. He did say that playing Nintendo DS first-party games at the new WiFi hotspots they're setting up would be free to play online. I think someone got these two mixed up. It's on Gamespot in the news section:
http://www.gamespot.com/news/2005/06...s_6127066.html