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I buy every game available on UMD on UMD.  I've started gradually re-buying the ones I own on PSN as they drop under $9.99 (usualy waiting for a sale on top of that!), assuming all PSN games will be playable on PSP2, but all new games I buy on UMD.

Edit:

Remember when SCEA tried to "test" the DD waters in NA by making Patapon 2 download only?  I was so pissed that even if you bought the game in stores, box and all, all you got was a download voucher to get the game on PSN.

Well a month or so ago I saw the game in-stores on UMD.  Apparently they re-released it a year later after it totally bombed.  -_-