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Then why not call it Playstation.TV/PSN.TV or something. Emphasizing the overall eco system rather than the least successful part of the eco system seems smarter.

Also, you answered your own question. Without a touchscreen or a touchpad, some games will not work or not work quite right.

Maybe they should have waited and included the DS4 in the bundle.

As for the resolution, one of the big benefits of the Vita is the glorious screen with its crisp resolution. 540p on my big TV is going to strip out a lot of that glory. At least when I play PS2 games, I expect them to look like crap in 480p.

Also, since most of the library offers a console experience on the go, I would rather actually have the console experience on the TV than lesser version of console games lessened even further. With more Vita specific games, the experience is still going to be better on the Vita itself, what with the touchpad/screen.