I still regularly use my PSP. In fact, including PSOne Classics I likely have more titles for it than any of my other consoles. It's certainly my favorite handheld, although the original Gameboy and the DS are probably more influential.
I actually opted to get a PSP with the money I could have spent on a smartphone. I do not regret this decision one bit; I got way more value out of a $40 game every other month than I would have ever gotten out of a $60 a month data plan--especially when WiFi is everywhere. I will probably keep my PSP until it breaks.
The sad thing with the Vita was Sony made it entirely too pretty and powerful. You don't actually want production values on a handheld to climb too high; most devs for them work on AA budgets at best. This is a magnificent example of know thy business partners. I really hope Sony tries the handheld thing one more time. A smartphone with button inputs and an SD card slot would be fantastic, especially if Sony doesn't try to murder the bankers again.
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