I've always imagined the Vita is just the 'footsteps' in making the gaming tablets / phones. I have no idea how hardware costs would go, but they could surely make a tablet / phone that has all that functionality, but also the hardware to play all Vita titles. Then you're getting both what you say is best, them going for phones / tablet, but with a huge software lineup already (relatively speaking). No idea if it'd cost far too much though.
Either way I think releasing the Vita seperate and merging it with phones later on is more sensible then trying to make some super all in one package from the off. I've no idea if this is Sony's strategy but to me it doesn't make sense not to release some sort of Vita phone - once manufacturing costs are down, software is better and it actually makes sense for them to do it. It could be an engineering nightmare to get its size right but I reckon it could be done.
We'll see, I really like my Vita but I don't really get whos going to want it when we're talking about mass market and all that. They're going after the 20-something guy who owns a PS3 or 360 but no ones really sure they want a handheld console. The PSP sold a large amount in the end though so I'm sure PSV will carve out some sort of market in the end, probably after a price cut.
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