The Go! is an experiment. Judged by the criteria in the OP it does indeed seem to fail. I'd argue though those criteria are not the right ones to use.
Sony is clearly testing the water with the Go! It's not the latest PSP model a'la 2000 to 3000 but a different model entirely, aimed at a totally different audience.
I have no idea if it will succeed or not, but I am curious to see if it does as that will indicate the real audience for digital distribution, and all the changes it would bring.
I've often noted that those who bang on about digital distribution are also going on about how great used games are in the very next thread posting, leading me to understand they simply don't really get what a true digital distribution market would mean.
Try to be reasonable... its easier than you think...
