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It's OK. All the buttons are sinked in to allow for good fit between the top and bottom sections. It may not look cool, but it's a necessity, plus you don't really need it to look cool when it's open. It looks excellent when closed, and that's how people will see it and remember it.
What's with this "need second analog stick" thing? Where would it fit, realistically?
Plus, the GameBoy works perfectly with only a D pad and TWO buttons, yet the PSP needs a second analog stick or it's a failure?