Those who think the fee to too high can always purchase the discounted digital version and then turn around and sell the UMD to recover some of the cost.

True. Though I am giving more a glimpse into the future of PSN and XBL titles. You don't have a option outside of not paying if MS or Sony decide to charge for PSN and XBL titles in the future.

It's why It's good to be a PC gamer (which I'm not) in the sense that Steam has never re-charged their customers to play older titles or re-download anything. I'm sure Castlecrashers and many other games will cost a few dollars to re-download on future systems.

you are only being charged for UMDs not for everything else. If you already have a psp downloadable game, it's free to play it on the psv, 

 You're very wrong about this - as the guy below said all PSP games you own digitally are free to download to your Vita. It's only getting your retail games on the Vita that they're charging for. PSN / XBLA games won't be charged for us to play on the PS4 / Xbox 720 as the way the whole thing works is you'll carry your PSN  / Xbox username to the next system, redownload it all blal blah.

 They might opt to recharge us for PS3 retail games to download on the PS4 hard drive or something, depends if the systems use Blu-Ray players and stuff.

I see this being a big hit in Japan since they're so handheld-centric(I don't care if that's not a word). But, it probably won't make too much of a difference anywhere else. PSP games don't get added features if you play them on the Vita do they? Plus, my PSP can connect to my TV, so I'd rather play my PSP games on my PSP anyway.

That or people would simply rent the game or take it from a friend.

UMD Passport: Only One PSN Account Per UMD

http://andriasang.com/comyxt/

Thinking about cheating Sony's system to get some cheap PSP games through the UMD Passport program? Based off Sony's official press release announcing the program, you may not be able to.

The fine print in Sony's press statement (see it here in Japanese) says that once you've registered a UMD with a PSN account it can't be registered with another PSN account.

Sony has not provided details on how it can determine if a UMD has been registered or not.

The official announcement also clarifies a couple of additional issues:

The downloadable game you get through the Passport program can, like other PSP games, be used not just on Vita, but on your PSP or PSP go.

Sony announced 40 compatible titles today, but said that it has around 200 planned for compatibility. The full list of titles that will be compatible at the start of the program will be announced at the PS Vita promotion site in mid November.

The program will begin on December 6. Of course, Vita doesn't actually see release until December 17.

Seems logical. As they wanted to change the medium of the games, they just can't support UMD, but to offer this service for free would leave it so open for fraud that it would be pointless

The low price seems fine to me, so I might pick up some classics (Vice City Stories if we don't hear of a GTA for Vita...) to keep me entertained while they aren't too many Vita games

To my knowledge there are no such thing as serial number with video game. So I think they mean that once the game is registered on a PSN account it cant be transfer to another PSN account. Not that you cannot use an original disc to register on multiple psn account. Im pretty sure this is the justification for the somewhat expensive option this is. The devs and Sony are sure to receive something even if people rent or grab a UMD from a friend. I think we can expect the new release to cost nearly as much as retail to register.

Still they cannot block UMD for said game working on other console.