i don't see what's so special about this model. basically the only important thing is the addition of a larger hard drive.... but you have to pay more money. i would be impressed if they sold this model at $400, but overall i'm underwhelmed. It's a good deal, just not great, especially since it doesn't come with wifi built in.
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