Vita failing would really solidify the fact that people want low quality sub-par handheld experience on mobile/3ds.
Vita success would obviously be good for the industry. I'm not sure developers love working on shovelware.
Sub par? 3ds? Tales? Metal gear? Resident evil? Tekken? Dead or alive? Street fighter? Kingdom hearts? The mario games? Ocarina? As far as I'm concerned 3ds does everything my psp did and combines it with ds. That is the reason I don't see a need in vita. Nintendo > sony.
One more thing to complete my year = senran kagura localization =D