Sony Struggles To Define the PSP
They should offer it as one of the few handhelds that let you make your own games and share them with friends. Hell, I dunno, offer a simplified development kit for the price of a game with a way to import your own art and music. Allow people to create their own games on the damn thing. Then, for maybe a bit more money, offer an advanced user package that's basically a simplified SDK.
If they wouldn't try so damn hard to break homebrew apps, I bet people might buy more games. I know for a fact that before the ability to downgrade firmware, people wouldn't buy games because it required an update first.
Open the thing up (except the UMD format -- I'll give them that much to keep), let us make our own games without implementing roadblocks to homebrew, and the thing will sell more.
Oh, and actually release some damn games already.