1. It should look like a PSP, it's the spiritual successor to that device, except it packs in every possible tweak PSP users requested.
2. Smartphone's target a different demographic (casual/small app gamers), to infer dedicated games systems are in trouble because of the explosion of the smaller games/casual market is silly, unless you think dedicated gamer's are going to die overnight. Plus, Smart Phones don't have Sony's dev studios, so...if you didn't like Sony's games to begin with, this means nothing to you. However, if you do like Sony's IP, there's no alternative.
3. Killer App is subject to opinion, just because you don't like their launch lineup, doesn't mean a whole hell of allot.
4. 2nd pair of Shoulder buttons are negligible, especially given the plethora of touch options for control scheme.
5. 3D is great for big screens, obnoxious and really unnecessary for smaller screens, which is probably why a great many people turn off the 3D option on the 3DS, not to mention the impact it has to performance (though, given the PS Vita's power, this is likely not to be a problem).
People can claim all they like that the vita is an overpriced handheld, facts however, refute that claim. Firstly, Sony always sells their hardware at a loss, that's not proof that the same is the case here. However, given the PS Vita has more power than the 3DS, Ipad, or Ipad 2, and costs less than 2 of them, there's enough evidence to suggest that it is being sold for a loss (based upon isuppli teardowns of the 3 aforementioned items). The 3DS costs $100.71, to manufacture, and is being sold between 70 and 80 dollars above that cost.
You can say it's too expensive to justify the expense, at this time, but overpriced is the wrong word to be using.