I just read this and it reminded me of the day I decided the PSP wasn't worth investing in. When the thing first came out, it exploded due to two things: UMD movies and homebrew hackery. Within weeks of release, people figured out how to run Super Nintendo and PS1 ROMs on the system via the Memory Stick. I was stoked. It sounded like great fun and a nearly limitless library of titles that could be ported over...albeit not entirely legally (though I own tons of games, so owning the original technically means I have rights to the ROM).
Sony's reaction? Rather than embrace any semblance of user created content, they released a firmware updated REQUIRED to run any Gen 2 PSP games, and after the force-update, the homebrew stuff was quashed. I don't know if it recovered since I really stopped following it, knowing that for every step the users made to try to make the system worth a shit, Sony would be there saying "NO, YOU MUST ONLY PLAY OUR SHITTY GAMES AND NEVER HAVE FUN!"
And since I don't give a flying fuck about any "real" PSP games (other than *maybe* Jeanne D'Arc and Loco Roco), I won't buy it. I won't buy the slim model either. Sony says they care about the customer, but do everything they can to shortchange and rip them off.