iPod.... I don't even own an iPod, nor do I want one... But, I don't think the PSP will satisfy her... already seems a bit picky over the models... when she finds out she can only watch youtube on PSP via remote play from PS3, she's not going to be happy....
Just go with the iPod... Maybe Sony will get around to adding flash 10 to the PSP web browser someday... instead of flash 5, wth? Who uses that still?....