I was impressed, the system looked pretty awesome. At that point in time it looked like Sony had this gen wrapped around it's fingers and this was just another nail in Nintendo's soon to be coffin. Price and battery life is what kept me away for the first year. That's when the DS started to shine through and I bought one to play Mario Kart.
Great decision on my behalf. I wouldn't mind owning a PSP but I can't see myself forking out for one unless the battery life was improved and they came up with a better way to surf the net from it.