I guess I'm alone here, but I got a PSP last month and I'm loving it (LocoRoco!) ... and I think it has a bright future. GTA Vice City Stories ships in four weeks, and it's going to sell a hell of a lot of PSPs. And there are a ton of other promising games coming soon... Killzone Liberation, Ratchet & Clank Size Matters, Jeanne d'Arc, Dungeon Siege Throne of Agony, Tales of the World: Radiant Mythology, Cash Money Chaos, etc.
In other words, it's a great purchase at that price.