The Vita will be OK.
It's not going to be dropped. It's not going to be discontinued. It will be slow to build in Japan, mostly because of the PSP, but it will get there. It's going in that direction now, actually, with more and more games being announced. The library is growing at a nice rate. The smaller developers in Japan know that the Vita is a blue ocean and the larger developers (outside a few notable exceptions) know that having two viable markets is better than one. Vita software sales are not bad at all.
As others have said, it will catch on in Europe once the price goes down. At this point, just like Nintendo with the Wii U, Sony isn't willing to take a loss on the Vita, so the prices are going to have to fall naturally as productions costs drop. That means a price break will come when it's possible for Sony to do so, not on some arbitrary date. Yelling for it to happen now isn't really going to accomplish anything.
In the US, there is a bit of hope, mostly because CoD and Assassin's Creed sold quite well. Very few developers in the West, however, seem to understand the potential of the handheld space, be it with Nintendo or Sony.
The things that will improve the Vita's situation are price reductions on both hardware and memory cards, a growing library, landing a big IP in Japan, landing a big IP in the west, and the continued support of PS+ and the PS4.
Now, if I were in charge, the one thing I'd get on ASAP is developing or finding developers to partner with on several IP aimed at the Pokemon demographic. It's something Sony handhelds lack that I think could really help the situation. Throw some games out there and see if anything catches on.
