I think th PSP is going to go the way of the Wonder Swan
1) It's too expensive
2) it uses media with moving parts == wear
3) It will massivly resrict hobby programmers
4) It will most obviously use Sony propiatory format for music and videos, meaing personal content can't be used with it.
Let's look at the GB-SP as a compaison.
1) Much smaller form factor
2) System is "open" for the most part. Even though you can't produce your own commercial games, (You have to use an image of Nintendo's trademark as a key to execute a rom.) The licence to allow you to create your own GBA games is dirt cheap. It's only $5,000-$10,000 plus you have to be at least a Limited Libility Comapny. Compared to Sony deveopment which is $64,000 just for support, the toolkit costs another $10,000 per kit. That and you have to be a full blown corporation.
3) To learn to program a GBA, all you need is free emulator, a free ARM/THUMB compiler, and if you want to get really fancy a flash kit for $250. To learn to program the PS2 for example, you have to have a PS2 Linux kit that $250 + the PS2 itself, which is another $200. Even then you are locked out of many aspects of the system incuding DVD-ROM access, advanced audio, and the root directory of the memory cards.
Sony is suffering from Miscorsoft-ism because they also own a major record label (Sony Records) and a Movie Studio. (Colombia/Tristar) If they had these assets back when they created the walkman, they wouldn't of been where they are today.
BTW, the Sony betamax died because you had to go though Sony for commercial contentent. This massivly impacted the market for adult videos, VHS, which was free of restrictions, allowed it.
And who says p0rn isn't useful ^_^