I was excited when I heard about the PSP, but the latest handheld offerings have been pretty disappointing. I think I'm grudgingly going to go with the Nintendo DS. I would have gone PSP for the better launch titles, but I refuse to pay a $250 MSRP, and Nintendo has more of the franchise games I follow (Mario, Zelda, Animal Forest.)
In any case, I'm waiting for both to go down after the holidays, but I think the DS will hit a reasonable price well before the PSP, given Sony's vicegrip on the high-spending market.
I'm just so disillusioned by videogame companies now that I buy my own games - when I was a kid, I never realised that my parents would pay 100% over retail just to get me some game I was whining about. It's amazing what people can get away with in a free market.
~Joe