I have a few comments in no particular order:
1)I really don't see the iPhone or Touch as a competitor to a gaming-only device like the PSP for a few reasons: a)the games for the Apple devices seem pretty lame compared to the stuff that's been on the PSP for awhile. b)the Apple devices are not gaming-only...they are all-in-1...like those $199 stereo systems you could buy in the 80s and 90s that's 1 box with an AM/FM tuner, cd player, dual cassette, and turntable. Sure, it's got a lot of stuff that works, but no single piece is for the serious listener. c)the PSP and other devices have actual physical knobs and controls. Touch screen is nice but it's not the same...no matter how much you try to convince me.
2)The PSP, to me, seems old...I think it came out in 2004 and there may have been some updates over the years but I think maybe it's time Sony comes out with another update.
3)Speaking of updates, gaming consoles don't come out with OS and other updates every 11 months like Apple's iPhone/iPod line that is constantly changing. Sure, change is nice...but for game developers that's not nice...they don't whip up a game in 90 days (or less) like the apps you see (gaming and non) on the iTunes store. Console games likely take a year or longer...and changing APIs, CPUs, and other tech specs often is not good as the game developers can't just constantly re-tweak their games.
4)I'm not sure where Apple is going with this...I haven't seen any advertisements (tv) regarding games on the Touch for over a year now. What is the iPod Touch supposed to be? Again, the all-in-1 thing is cool but as a solid gaming device I don't buy in...TV is littered with PSP and other gaming console ads.
-Eric