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This is not the end of the PSP because Sony won't release another until the cell is inexpensive to manufacture at the 32 or 22nm size. This will make it easy to port legacy PS3 engines (giving everyone a headstart on development)to the console while having it use the least amount of power possible. That will be about 2010 2011, making the console about 6 or 7 years old. Very similar to the PS2 lifecycle.

Who cares if the PSP western developer support dries up. I've always loved companies like Capcom, Konami far more than most western developers with the exception of Naughty dog. It's not like other consoles(N64, GC) didn't have worthwhile libraries even though their consoles were not market leaders. Quantity does not always mean quality and everyone has different tastes.