they never really dropped the PSP's price, they just got rid of the Value Pak crap. I really hope they redesign it to resemble a GBA SP because then i may be able to justify trading in my current model. Bottomline is that while the PSP is selling decently, it definitely needs a shot in the arm to generate consumer faith, which is what it is seriously lacking.
My Top 5:
Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger
My 2 nex-gen systems: PS3 
and Wii 
Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.
Essay Pro