Well, the PSP has less games because it is a lot more expensive to develop a game for the PSP than iOS. Plus, Sony's game approval policy is actually a ton more stringent than Apple's App store policy. As for crappy games on iOS, let's face it, it's a very young market compared to the PSP. We are seeing a ton more high quality games now on iOS, with many nearing console quality in terms of graphics. Another thing with iOS is that devs know the hardware is going to be improved on the yearly basis, so we will see accelerating progression. On the other hand, PSP devs are stuck with practically the same old hardware for at least 5 years or more.Sony has always been a console with few games. Apple, perhaps more closed, has thousands of gamesand some very crappy.
So it's up to you, more game choice regardless of crapiness, or fewer games in an expensive console.
Another thing that the iOS devices bring to the table is easy access for consumers to buy apps/games, something than any of the consoles have never experienced before. I think Sony is pretty forward thinking with the PSP2/NGP and the overall strategy with the Playstation brand by doing the non-hardware specific Playstation suite (Android) since they recognize the market is shifting, and they cannot depend on a specialized locked in hardware+software anymore. It's going to be very interesting moving forward.