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DS had full WiFi, just nothing to do with it unless a game needed it, but yeah pictochat did use that receiver. As far as I know it was a proprietary protocol so not actually WiFi, but same antenna and bandwidth and everything.
I feel like I read it uses ad-hoc capabilities not unlike what's used on Switch nowadays. Ad-hoc networking isn't used that much though outside of that for some reason.
Yeah that's right. No routers needed.
All local wireless gameplay on the DS is the same ad-hoc networking, too. Some games, like Mario kart, could use ds download play which is the same thing but a host would send over full game data before playing, too.
The 3ds also used it for local streetpass.
Nintendo experimented with it a bunch, honestly, although I always felt it was relatively unexploited in the ways they did. DS download was cool though because it was a mobile console's split-screen gameplay, instead of selling you 4 games to let 4 people play.