I think the PSP is a beautiful piece of hardware and I want to own one so bad it hurts. Sony has a way of designing products that scream cool in a way no one else can, except for maybe Apple. My problem is that as Tycho said the PSP's various features move it into the "gadget" realm. However whereas he is resistant to the lure of gadgets I am quite the opposite. I am drawn to shiny overpriced electronics in the same way Yogi Bear is drawn to picnic baskets.
Looking at the device and talking with my friends in the industry it seems unlikely that it could sell for less than $300. Sony has announced that it will eat the cost of the hardware though in an effort to keep the price down. So does that mean we could see it as low as $199? I just don't need a new portable media system enough to drop that kind of money on one. However I also didn't need a pair of glasses with a television inside them, but I dropped $400 bucks on those when they came out. The PSP is another expensive gadget I don't need that I'm not going to be able to resist and that's why I fear it.
My mail is still boned but you can always reach me at gabe@penny-arcade.com
-Gabe out