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I say DS because it's small and compact, has a battery life you'd want from a HANDHELD (PSP's battery life is pretty poor for a device you'd expect to carry around with you on say a holiday).

Also, the games. It's a non-contest. You're talking about one console that is made for unique games vs a console that doesn't separate itself enough from it's plug in a powerpoint brother. Nearly everything you have on the PSP you could get better on a PS2 and PS3 (if you have BC).

Both are good handhelds and deserve some attention, but if you want a keeper, it'll be the DS.