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1.
I should say that instead of "who cares if western development dries up?" I don't care.

2.
"Decisions made 20-22 months ago from a development cycle perspective are affecting the quantity of titles available today," said Koller. "20-22 months ago developers and publishers were looking at the PSP hardware and thinking 'It's not selling as well, maybe it's time to move our resources elsewhere.'"

"Things may be looking up for 2009. Koller said Sony has been on a road show for months visiting with all of the major publishers to get them stoked about PSP software development. A number of "very strong franchise games" (which have yet to be officially announced) will be launching next year, he said, and third party support is expected to pick up as well."
http://www.escapistmagazine.com/news/view/86456-PSP-Hemorrhaging-Third-Party-Support

3.
TGS has yet to happen, so lets see if we don't hear some announcements from Japanese companies that are supposedly decreasing their support since Japanese devs seem to be really about the portable scene as of late.

4.
The development cycle for PSP is probably a bit longer than that of the DS just about insuring less titles. Which also might give the appearance of steadily decreasing support.

5.
3rd Birthday will be a Third Person Action Game coming from SE. Just because they specialize in RPG's doesn't mean that haven't tried anything else and had it work out like PE2 which was a RE clone, Brave Fencer Musashi, Bushido Blade all games with good critical reception and cult following.

6.
Notice the capitalization of the word TRYING in my previous post which means I was emphasizing it to show the exact same point, Sony is not the cure but they are TRYING to be.

7.
Monster Hunter and its expansions don't seem like withdrawing support.

8.
Phantasy Star Portable (a decent success I might add) doesn't seem like withdrawing support.

9.

PES 2009 will continue to hit the system as well