The whole "OMG Sony is copying Nintendo by offering digital downloads" is so incredibly short sighted.
In case you guys haven't noticed it yet, ALL forms of media are slowly switching towards digital downloadable content. Music was the first thing to have commercial success with it, but slowly TV shows are getting into the act, and before you know it so will movies and everything else.
Of course games would follow this path, especially since older games can be downloaded within minutes with a broadband connection. It's just common sense. But just because Nintendo announced it first with the Revolution, all of a sudden its Sony's copying Nintendo. Or Xbox Live Arcade is copying Nintendo. No, it's all three gaming companies are moving progessing along the same smart and inevitable plan.
As for the PSP, Sony is obviously trying to offer something more then a portable gaming system. They are going after the "mainstream." Nintendo did this with great interactive games anybody could play like Nintendogs and Brain Academy and the like. Sony is trying to offer a complete multimedia center. You can play games, watch movies, surf the web, listen to music, (and with some of the new add ons they're talking about) video chat, and find directions.
Of course some of it will be hit or miss, but they're out to make money. Just like Nintendo.
All that being said, the PSP still has a good amount of flaws. I never did like how the D-Pad or the "nub" handled. And most importantly, (and this is still a valid argument no matter how many people say it) it doesn't have enough software to make it worth it. Especially since I already have my iPod. Even so, the PSP showed everybody what portable systems in this day and age are really capable of, and I hope Sony continues the trend forcing other companies to follow their lead when the inevitable PSP 2 comes out.