I really can't see people's problem with the PSP-Go (except for the ergonomics argument, that is a design flaw). If Sony had discontinued the PSP-3000 then I'd understand perfectly, except they didn't. The PSP-Go is not designed nor was it intended for current PSP owners. It is intended for non-PSP owners who find the current PSP both too large, too awkward with having to carry around a bunch of UMD's, and too slow to load off the UMD drive.
Yes the price is high, as has been explained a bunch of times, a large part of that is margin for retailers to compensate for nil second hand games sales. And like all electronic devices, the price will drop as demand drops, if this flops (I suspect it will sell poorly initially) then the price will be cut so that Sony can recuperate development costs.
If you want a PSP that has a UMD drive, buy a PSP-3000. If you want a PSP for $179, buy a PSP-3000. If you have a bunch of UMD games and your PSP dies, buy a PSP-3000. If the idea of a digital download only device scares you, buy a PSP-3000. If you want a smaller, more portable PSP and don't care for UMD, buy a PSP-Go, if you think its too expensive, wait until it gets a price drop. Its not rocket science.












