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Muramasa and Persona would work on Vita TV. Biggest issue is that any game that uses the touch a lot won't work. LittleBigPlanet Vita is one of them and it's pretty good and close to the PS3 version, but with levels using touch, accelerometers and other stuff. Tearaway is the best Vita game and won't work on Vita TV too and with the heavy use of all the specific hardware, it won't be patched for Vita TV.

With all that in mind, I recommend the normal Vita. The renaming as PlayStation TV actually says a lot of things about the direction it is headed. Like Apple TV or Amazon Fire TV, it is positioned as a cheap streaming device with some extras: some Vita games, PS1 games, PS4 remote play and PS3 using PS Now. Vita TV is more for people who want a cheap Netflix box or an extension for their PS4 to allow using it in different rooms without the hassle of moving the console.