We all knew that handhelds are dead.

The console gets more monthly releases than the Wii U! Sure it is not booming but it certainly is not dead ie Jaguar/3do/Dreamcast(excluding homebrew) etc. It is still selling and in production. Whoever wrote that should be fired.

The PSP sold more than all of Nintendo's home consoles barring one(the Wii). Yes it did get smoked by the DS but still an excellent effort for a first handheld entry. Shame the Vita could not follow, it is an excellent piece of hardware...

I mean, technically he's correct then. 

You're grossly misunderstanding the point of the Sony handheld line if you think they were ever trying to compete with Nintendo. Sony went in invincible, having completely wrecked the entire scene with both the PS1 and 2 up to that point, so logically they could just waltz in and slam the handheld market too. Nintendo's key focus of handhelds until this gen was simple experiences that appealed to kids or were good for car rides and such. Sony's goal has always been to produce a portable console for the core market, and that's why the Vita was destined to fail. 

The PSP could survive and even succeed with that mentality because PS2 games weren't too expensive to produce. But the Vita was designed and advertised as a portable PS3. However it was never made strong enough to actually be one unless a developer put in way too much money, so when "SORT of PS3 game-ish" came out, no core gamer really wanted it because it's not impressive enough. Then the game bombs, and the prospective budget for future Vita games goes down because, again, the developers wanna make a profit. When the intro cost is already multiple times as high as a 3DS game, it's incredibly tough to sell a dev on the Vita. And with no games worth buying a Vita for outside of a handful of first party titles which STILL aren't technically impressive enough to fulfill the marketing promise the Vita made at launch, nobody bought in. And because the install base is low, third parties back off, and the cycle continues. Sony knew within a year that the Vita would become a PS4 peripheral because they grossly underestimated the market for a "console-tier" handheld in the modern era of superinflated budgets. 

this is the best thing ever

Ah wow...

I wonder how many heads will roll over this. Surely more than one person is to blame.

Sony continues to have absolutely incompetent PR. At this point, this really shouldn't come as a surprise to anyone.
At least the Vita has the Danganronpae and Persona 4 Golden as sort of kind of exclusives (though, considering Spike Chunsoft is working with Sony on a Morpheus version of Danganronpa, I would not be surprised in the slightest if the Danganronpae come to PS4 in some form eventually).
I spent 50 bucks on my PS TV and I use it to play three games (though I will probably get Steins; Gate and Virtue's Last Reward at some point as well). I have not been dissatisfied with my meager purchase.

PSP did failed for while. The reason of PSP doing well is they decided to bite the bullet and continue supporting it, targeting market that Nintendo didn't took over yet.

I think Vita's failure came from the fact that they targeted non-existing market of AAA portable game scene. It ended up gathering same audience as PSP, but without developer support.

For that matter, it still gathered the audience that first came for PSP without Monster Hunter.

The reason why I quoted you though? This mistake is unthinkable. Playstation Vita is NOT a legacy device in Asian region (South Korea / Japan region) Danganronpae doesn't need to come to PS4 in their perspective because PS Vita is perfectly alive and well there, and I think they didn't even listed PS Vita as legacy device yet. I don't understand this move from PS Asia at all. Yes, Vita TV is miserable failure but...

Yeah... i'm sure it was a dumb employee. We all know its true, but Sony officials can't say that. And besides... it depends on the definition of dead. The Vita still see's new releases, so its definitly not dead. Maybe the expectation of having big AAA games exclusively for the Vita is indeed dead though.

Vita is kinda dead in almost all definition in western.

In Asia though? Vita is still going pretty strong in Japan, selling 12000 hardware in august 24~30 according to Mediacreate.  The fact that it doesn't have single AAA, or so called 'Super A' titles actually helped small time anime game developers who can't allocate finance on decent marketing, allowing them to dominate Vita's game scene, attracting original crowd that supported PSP.

In South Korea, situation is bit different... Vita was completely crushing 3DS until Pokemon arrived, and now it is pretty evenly matched.

I believe Vita is going pretty solid in surrounding Asian market where they still have original PSP crowd who look for niche anime / rpg games, which expalins why they didn't put Vita in legacy section in most Asian country.

Which makes this situation doubly baffling.