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As the PSP becomes more popular, which I am hoping it does, I'm hoping that the audience it expands into wont be interested in hacking and so on, and more so in just the games.

Sony needs a big name title right now I would think. Maybe get Gran Turismo on there and some other big sellers. Maybe try appealing to both casual and the more hardcore audience?

As for me, right now it's the price tag that's preventing my purchase I would say. Right now the main titles I'm interest in are Monster Hunter series, God Of War: COO, Killzone Liberation, Metal Gear Solid, FFVII:CC and FF: Dissida. I think more titles like that, and a price drop could help also.

 

EDIT: And if PSP2 is announced anytime soon I would think it would need these:
Backwards Compatibility with PSP titles

Competitive Price

Original Features (DS has touch screen, needs something original, or at the very least, something similar)

Big Name titles

Community features (Online chat and so on)