I wouldn't say that the PSP's low software sales are because of Pirating.
First up, DS, 360 and Wii have all been cracked already and they still have strong sales for their games (even with the high levels of pirating going on). Fact that there are alot of casual gamers shouldn't mean the DS doesn't have as many pirates as the PSP do. In fact, the DS should have more considering it's just another catridge (M3, R4DS you name it) while cracking PSP is harder and more costly.
Secondly, PSP is a media beast, alot of people buy these consoles for media capabilities rather than gaming. Most people you see that own a psp will use it for one or two games and the rest of the time as a video or music player.
Third, PSP's library is not that great, let's be honest. Aside from a few choice titles, there isn't much out there and there isn't enough games on the psp to differentiate itself from the PS2. So, would you rather buy a more powerful PS2 that costs less (it does here in Aus, it's like $150-$200 new) or would you buy a less powerful PSP ($250-260 these days) which basically has the same games but a smaller library. Patapon is a step, but a very minor one considering how long the consoles been out and how little it's innovated. That's why the DS is supreme, DS can be played in light sessions (i.e bus trips) because they are so approachable (EBA, NSMB, Mario Kart, Warioware etc), but a lot of PSP games require a fair amount of play time in one session.
Finally, the term "uncrackable" is a myth. Every 3D console can be eventually cracked or changed/hacked to play pirated games. Only thing game companies can do is try their best to prevent that (so stall them, like PS3 with blu ray) or they can catch them (xbl banning for the 360).







