The most serious problem is of course the pricing and distribution monopoly that PSP Go effectively establishes. No competition = bad, in case you flunked economics 101.
The second problem is that you, the customer, relinquish any and all rights regarding your game purchases, and that every single cent you spend on PSP Go games is completely lost forever to you. You get the short end of the stick.
"Well certainly with the Xbox 360, we had some challenges at the launch. Once we identified that we took control of it. We wanted to do it right by our customers. Our customers are very important to us." -Larry "Major Nelson" Hryb (10/2013). Note: RRoD was fixed with the Jasper-revision 3 years after the launch of 360
"People don't pay attention to a lot of the details."-Yusuf Mehdi explaining why Xbone DRM scheme would succeed
"Fortunately we have a product for people who aren't able to get some form of connectivity; it's called Xbox 360,”-Don Mattrick
"The region locking of the 3DS wasn't done for profits on games"-MDMAlliance
