It's in 3D, which hasn't been put to brilliant use. You can rotate around your opponent, but the game AI's psychic powers make this rather ineffective. This is even worse with the Kawarimi move warping over to the other side of your foe - because the DS character has already turned around to face you before you've reappeared. Cheater!
For any experienced fighter, even on Hard this won't offer enough of a challenge. The touch screen is only used to activate the six bonus items you have for each battle, which boost your health or chakra (the power behind the special moves on the A button), and most fights can be won with just Y and A. Far too small and over-simplified, it's about 15 minutes of fun, and not that much fun either.