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The Vita's hardware was the source of all of its problems. Sony should have used significantly less powerful hardware in order to cut costs and provide an affordable system. Additionally, they should NEVER have used those proprietary memory cards.

If they had launched a pared down Vita a full year before the 3DS (it's not like they had to worry about cannibalizing the PSP's rapidly declining sales) at a lower price without those insanely overpriced memory cards it would have been far more successful than it was.

Edit: At launch the Vita plus a game, memory card and taxes would have cost me over $400. How is Sony still in business when decisions like these are being made at the highest levels?