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@OP

Depends who you're referring to. I agree that at the moment the Vita appeals to far too few people. There are some unique games and even some superb ones. However those games mostly appeal to the hardcore.
For instance I knew going in that I had to have Uncharted Golden Abyss along with Gravity rush. Unfortunately those games don't compare with the mindshare of a franchise like Pokemon or Monster Hunter especially within the mobile gaming space.

Than there is the value perception. Though I obviously think that the Vita is easily worth its price, most others evidently believe it is still too expensive.
On top of the problems regarding mass appeal games and cost you have to consider the increased competition from other handhelds entering the market as well as from smart phones and tablets.

So in the end you have multifaceted problems facing the Vita and the thing Sony should do IMHO is go back to their strengths and that is to make sure that major successful portable IPs are available on the Vita and exclusively if possible. The Vita is still in its infancy and Sony must do all it can to foster mindshare. And they must do so immediately.