Seriously with like 28 million out there you would think developers would want to capitalize on the psp but it seems to be the opposite. I've had PSP for 3 years and i have 3 games...one game per year.

Is it a lack of good games, or just a lack of people buying games?

wouldn't matter much. If a really good game was released, more than 50% of sales would probably go to piracy. That's probably why the DS does so good in terms of software sales, Nintendo's primary target are casual gamers, and casual gamers can't even tell you what homebrew is or even care what a ROM is.

Wow, did I just time travel to two years ago? Seriously, if you still think the PSP has no games, you're just clueless. Sorry if that sounds rude, but seriously, come on.

I think there are plenty of good PSP games out there. Just everyone would rather pirate them.

Just from this year:

Final Fantasy Tactics
Syphon Filter: Logan's Shadow
Jeanne D'Arc
Disgaea: Afternoon of Darkness
Final Fantasy VII: Crisis Core (Not yet released in western territories)
Ratchet and Clank: Size Matters
 

This isn't including lots of previous solid efforts, such as Lumines and Wipeout Pure, and Metal Gear Solid: Portable Ops. There are plenty of good titles on the system. 

While I am not a PSP owner as yet, it frustrates me that nearly every title that is released is a port, a spinoff, or a remake. Every game on Bodhesatva's list fits that criteria except for Jeanne d'Arc. I don't really want all my handheld games to be console-style in design, to be honest.

That said, I REALLY want Dracula X Chronicles. I want it bad. It's the first game thus far that has made me seriously consider picking up a PSP.

 Well spinoffs will allways be , luckily we got rid of the boring ports :D The PSP has IMO a fantastick list , and next year we will see in Q1 games like : Crisis Core , God of War , Patapon , MHF2G .... wow , Im so excited for the PSP at this time :D

actually syphon filter looks really good, it's just i haven't seen all that many, i guess piracy must be a big issue.

I just read about this game coming out called patapon. I want it.

"Where are all the good PSP games?"

On the DS. Biggest market share == biggest development investment.