PSN keeps getting better and better. Now that the PS3 can play PS1 games, there should be a lot more PS1 games available. Japan just got a huge update with a bunch of titles from 3rd parties. IGN just reviewed Calling all Cars and they seemed to love it. I also got invited to the HOME beta for this summer, which should be interesting. Overall, I'm pleased with the PSN, although there's definitely a lot of room for improvement.
My Top 5:
Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger
My 2 nex-gen systems: PS3 
and Wii 
Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.
