I like my PSP right now, but the shiny "newness" is wearing off but not tarnishing it by any means. I paid 225$ for mine w/ an online coupon and nabbed RR & Wipeout for 35$ a pop. If I had to pay the 40$ more that would have been full price for all 3, I don't think that would have swayed me. However, that savings afforded me Yoshi T&G for the DS + SF GBA

- lots of fun for little money.
I really enjoy the games I have. Lumines doesn't appeal to me and the sports games don't as well. NFSU2 might have, but I already have 2 racing games

. I've played Darkstalkers, one of my favourite franchies, and was underwhelmed. I imported Vampire Saviour from Japan for my trusty Saturn - the load times on the PSP version are just not acceptable. I have that beef with some PS2 games as well

. I am an RPG nut, so I was hoping to see a lot more of those on the horizon than have been mentioned. I'm keeping my eyes open during E3 to see what is in the works. MMORPGs are less appealing to me, but I'd take a PSO in a heartbeat. I'm just a little disappointed with what is on the near horizon (again hoping for some E3 surprises!). It seems they put all their cards on the table right off the bat and are going through a serious drought now. I've actually not played my PSP in a while and have started back on Yoshi for a quick fix and that wonderful Amazon deal on Shining Force GBA when on the go for something more lengthy. GBA games definitely have more shine on the DS with the brighter backlit screen!
"Get this for the GAMES" is a big piece of advice for the system. I, too, was excited about the MP4 playback and all, but the lack of full resolution and the expense of Duo Pro sticks right now is making it less appealing. I just got an iPAQ, and it can read MPG, AVI, and WMV files while taking the SD card that is much cheaper. I can get a 1 GB SD card for less than the cost of the 512 MB Duo Pro. I might reconsider this once the prices go down and if they can somehow overcome the 320x240 limitation to get more resolution (if you got it, flaunt it!!! of course, that hurts UMD sales).
The MP3 player portion is actually nice for regular MP3s. Again, the price of the Duo Pro stick is the problem. I can play that on my iPAQ and I also have a 20 GB Zen Touch that much more sturdy than the beautiful piece called the PSP. I'm also afraid of it getting banged up or scratched! The picture viewing just isn't something that is very useful (more of a cool added feature).
I had thought the PSP browser was a nice thing once found, but I got my iPAQ and quickly realized that the PSP needs a true browser to get my attention again. My iPAQ is a cell phone, too, so I get to browse (slowly!) even when not in a hotspot. That has really knocked most of the shine off the PSP for me as a multi-purpose device, but not everyone can get one of these gadgets because they are expensive. I wouldn't bank on this feature and would be more excited about the WiFi gaming on the system isntead. That's a great reason for get the system.
I definitely am happy with my purchase. Battery life isn't as bad as some have experienced, but it should be seen as a gaming machine because you're not going to get to watch more than one full-length movie on a charge. I'm glad they got a nice set of games out at launch (*cough* DS *cough*) but nothing coming up is really appealing to me after the first bunch of titles. I seriously doubt a price drop unless they take the value pack away or the DS goes down to 99$ (not likely, either!). I would definitely wait to see what E3 shows you so you can decide if the upcoming games are going to be of interest and worthy of the purchase for now and the near term. I'll be watching out for them!