I have my iPhone turned on (not locked, screen on) all day listening to music set to push every 30 minutes and I still have battary life left over when I go to work.  The iPhone actually has really good battary life.

Also, compared to the PSP's battary life, it's excellent.

I would easily pick the iPhone over the PSP any day.

• Phone-- iPhone
• Music-- the iPhone is an iPod, it has free Pandora, and iTunes.  Sure, the PSP plays music but it's nothing compared to what the iPhone offers
• Pandora-- I don't think the PSP has this and I know I mentioned it above, but it does need its own point.  You name a band you like and it makes a radio station that seamlessly streams that has that bands and other bands like it.  You can make as many as these stations as you like and you can listen all day for free.  You can even mix all your stations together.  Pandora is amazing.
• Games-- PSP, but to tell you the truth, I've found some fun iPhone games.  Nothing I would sit down and play for hours upon hours, but more and more games are released every day.
• Internet-- I haven't had a problem with most web pages on the iPhone.  There are the occassional web pages that don't work well or right (for example, you can't use the rich text reply on this site) but for the most part they work very well and a lot of pages have pages made especially for mobile browsers.  I can't really talk about the PSP browser as I've never used it, but I'm just going to assume the iPhone browser is better because it's really good.  The fact it has touch screen and the PSP doesn't should be a big hint.  Also, internet anywhere is a huge plus.
  
• Videos-- I suppose PSP has this one, but since you're viewing something on a tiny screen converting everything to an mp4 (or whatever the format it uses it, I forget) isn't hard since you'll probably want to shrink it down anyways so I would actually call this one a tie.
• Email-- Built in client versus webmail if you have it?  Easily iPhone
• Touchscreen-- pure opinion on this one.  I didn't like touch screens until I got the iPhone and now I love it.
• Apps-- The PSP does have homebrew but that is nothing compared to the app store.  The app store is nothing short of amazing and the fact it's always at your fingertips just makes it that much better.  I could go on and on for paragraphs about how stupid awesome the app store is but I won't.
• Memory-- Do you really need more than 8gigs?  The iPhone comes in 8 or 16 gigs and I got the 8 and haven't had a problem.  I generally keep about 5 gigs full of media (music, videos) and that's more than I need.
• OS-- it's funny you call the PSP a simple OS like the iPhone is some complicated OS.  Honestly, I don't think the iPhone could be any simpler and the XMB is just a confusing mess of huge nested menus that's a giant pain in the ass.
• Skype-- I haven't checked but I'm sure iPhone has an app for that or something very similar.
• Chat programs-- iPhone has every chat program imaginable.
• Social Networking-- iPhone has all the social networking things like Facebook and MySpace
• Google-- the Google app has everything google built right into it, the PSP does not.  You have to use the web browser and hope it works
• GPS-- does the PSP have free GPS built in?  The iPhone does.
• Contacts-- iPhone integrates all your contacts and calenders into it seamlessly, PSP doesn't have anything like that

I'm sorry, but the PSP can't even come close to touching the iPhone.  It might have the edge on games right now, but that's really about it.

Considering you want movies, music, and internet, the iPhone does all three brilliantly and I think would be the perfect choice.

iPhone?

This... I  have an iPod Touch 2nd gen 16gb. Never wished for an iPhone and never will. Although I first got PSP though...

Iphone 2 yr contract with close to 100$ a month

Considering you have to have a phone anyways (as in everyone needs a phone), that's not bad at all, especially since unlimited data is included in the basic phone plan.

PSP with no doubt.

Well I got a PSP and my bro has an Iphone, so I can compare:

I honestly think that the PSP owns the Iphone:

- Bigger and better screen
- Easier to use
- You can upgrade your PSP with MS
- Price!

The Iphone doesn't worth 500$ even if:

- It's a really nice device
- Funny to use
- Fast internet
- somme funny free application

PSP

PSP

Depends on whether it's mostly being used to play games, or media then games. Beyond that, the iPhone has much more versatility.

As an all purpose device, the iPhone is hands down the best one I've ever owned (3G 16GB) and I've only been using it for about a month now. It's my 7th phone in a little over ten years and this is the first one I've actually enjoyed using.

I did not want one and put it off for over a year (I dislike cell phones in general). It now replaces my laptop for basic web browsing on the go, e-mail, google/fact search, stock checks, map checks, gps, etc. Only need the laptop for dedicated computing tasks now.

If you need a mobile phone anyway (which is basically everyone), the monthly service fee is the same as any other smart phone with a data plan. But it IS the primary cost of the iPhone, not the phone itself which is at $200-300, is not bad for a pocket computer.

WiFi to 3G to Edge network means all of the above are available everywhere phone service is available. It shouldn't need to be said how useful net access virtually everywhere is. This is the one huge asset the iPhone has over the iPod Touch and the PSP.

App Store alone makes it the most powerful and versatile handheld device as it continually grows in diversity and scope.

As a small pocket sized device (and default phone), it goes everywhere I go, eliminating the need for any other devices. I'm not the waist bag toting kind of guy. If it doesn't fit in my pockets, it's a no go. The camera is sub standard, but, better than nothing when I go somewhere without the intention of taking pictures and leave a dedicated camera behind.

The PSP, great as it is, is really only needed as a gaming device and for PS3 device compatibility. But since I'm not carrying it anywhere for media/music, it's the at home portable device. The screen is a bit bigger for watching movies, but... since I wouldn't take one with me anywhere I went since I already have a media player/phone, it's irrelevant.

And the iPhone battery power lasts the entire day, even with regular use throughout the day doing mixed tasks.

ipod touch