get a DS, New Super Mario Bros. / Zelda / Metroid too name a few.

Big screen and a great portable device. Great with videos and IMO has superb music playback although playlist arrangement is an issue. Let's not forget it has some good games too.

If you do get a DS by chance, don't get New Super Mario Bros. One of the most uninspired and uninteresting games I have ever played.

whens the likely release of a PSP2?

I don't think there will be a PSP 2 right now... The technology is fairly advanced and it is selling quite will. I would be more inclined to say that the DS 2.0 will come in 3 years from now and the PSP 2 will be 4 years away.

more of an all-round device...console-esque experience on a handheld...big ass screen :)

Widescreen

Console style games on a handheld

Watch movies, listen to music

Mega Man Power Up.

It plugs into your TV.

Handhelds suck. (well for me... I can't adjust to the tiny tiny screens. I've got a gameboy advance i never use.)

Let me try telling you why not get a PSP:
1) The worst battery life in the history of portable gaming. Really, expect it to last 3-4 hours average (2 and half online)
2) Ports of lame PS2 games. There are way too many lousy ports. The PSP is so powerful that it is easy to grab a shitty PS2 game port it and call it a day.
3) Not enough original games. Even the exclusives play like dumbed down PS2 games. If you did not enjoy Silent Hill, Metal Gear, God of War or GTA in the PS2 you won`t enjoy them on the PSP.
4) The analog stick is shit. The lack of a second analog hurt the gameplay on some 3D games and direct PS2 ports.
5) The thing can`t keep itself clean even if your life depended on it. If you don`t play it using gloves, you will leave fingermarks all over the place (washing your hands is not enough)
6) Frail. Not really a problem if you are the only one using it. Just don`t drop it or let kids near it.

I enjoy the connectivity between my PS3/PSP, pretty nifty