psp go was an experiment just like psx was back at 2002/2003.i think the reason of its existance was to persuade developers distribute psp games through ps store.so when the next psp launches there will be plenty of content in playstation store to support it,since it wont have a umd drive
if they actually wanted it to sell at that price they should have added a lot of other feautures,like a videocamera,fm radio,and hugely increased battery life(sth like 12h so it could make a difference compared to psp-3000).........ooh and improve the wi-fi antenna.then it would sell like hotcakes(support for divx/mkv would boost sales hugely also)