You make a compelling arguement, Sony does blow lol.  

Thats why there are games like FFType 0, Jak 4, Darkcloud 3, Heavenly Sword 2, Puppeteer, Ratchet and Clank Nexus?

Not sure if you missed but I listed a lot of games that would have been exclusive to the Vita and that would fit the handheld very well.

Launch line up matters little. Price is a BIG point of contention. Look at the 3DS. It launched at $250, didn't do too well. Price cut to $170 and just 2 major first party games later, boom major recovery. Having a long-lasting library is essential, but price is equally, if not, even more important. Look at the PS4 compared to the Xbox One. Neither really has a particularly compelling library of games at the moment, yet the PS4 is handing the One its ass on a silver platter week after week. Now I'm not saying the $100 difference is the sole determinant, Microsoft fucked up the One launch in quite a few ways. But tacking an additional $100 for an accessory nobody wanted certainly didn't help.

A lot of people were pretty shocked when they announced it was 250 because they expected it to be higher and 3DS was selling pretty well (a lot better then the Vita) at the same price considering it had no games outside of SF4 and Zelda OOT. I think the perceptive cost of memory cards is more damaging in a lot of peoples minds then paying near console price for a handheld. 

Would have helped but not an extraordinary amount.

Sony just needed to double down with great handheld support. A hole slew of misfired console port or home console like games later, they still don't realize what went wrong... I want Sony to do good, but I have no incentive to buy a Vita next to my 3DS as is. A lot of my friends who have Vita's love the device but are dissapointed in a way with the support. One of my friends even flung his box of Borderlands 2 across the room to state his point (the game was still inside). I hope Sony will try again, but I'm afraid they'll stop making handhelds.

I can't imagine it would help. Because the upper end of the device cost like $350 and games for $50 each and a $90 memory stick. Prices like that are beyond unreasonable. Even if they lowered prices like they did the PS3 they would have eaten major losses and it would have been beyond catastrophic.

Sadly I think that the path the device took was the necessary path for Sony's best interest.

Dark Cloud 3, Vita Exclusive?! Fuck that.

To answer the question: It would've helped to a degree but not saved the Vita, also it would've cost Sony even more money on the system that they never would've made back with it.

The Vitas failure is great imo, because it teaches Sony to either change its handheld strategy completely or to just stay out of the market (way more likely). God, I hate handhelds.

This line up is too far fetched imo. What Sony should have focused on is portablility; price and games. And I'll tell you this; if Nintendo struggled to get decent 3DS sales, so would Sony no matter what they did

Vita is like a mini PS3 which is not a bad thing.. it just doesn't stand out. They didn't offer much handheld experience tbh, nothing to set it apart. Even in Japan it hasn't hit the ground running which is extremely worrying. Been saying from the start they need to cater for that specific audience.

In terms of why the PSP did well, it was two reasons:
1. The initial hype in the West where Sony were definitely going to overtake the handheld market as they did with home consoles. It dwindled out though after the third year and never really recovered in the West.

2. Japan was the saving grace. Monster Hunter kick started the PSP revival and then it pretty much replaced the play station home console as the main PS console in Japan.

Unfortunately Sony didn't consider that the Western hype was not there at all. Mobile gaming was another issue. It also failed to get their most important Japanese IP which was (imo) the final nail in the coffin. It's been a complete failure up to now. It would take big balls from Sony to go back to the handheld market now.

In terms of how they should've tackled it, I think they should've reconsidered their PSP approach especially in the West. And it would've helped if they focused their attention to where the real successes were which was Japan. They should have retained the MH series but they didn't and it's tough to see how they can recover from that now. Unless they get a break out series (so far it's been Youkai Watch on the 3DS) then the generation is over for them.