Not a typo or a cheap Chinese knock-off. This is the newly announced Nintendo 2DS. Similar to the Nintendo 3DS but without the 3D. The price point is set at $129.99 and colors include red and blue. Look for the Nintendo 2DS to hit stores after October 12th.
Yes, you can play 3DS games (in 2D of course) as well as Nintendo DS games as well. The 2DS will also sport wireless connectivity and multiplayer online gaming.