The GP2X sounds like a great console, but comparing it to the PSP is like comparing Windows and Mac. Mac runs better and is more stable, but it doesn't have nearly the ammount of software available for it, mostly because there aren't nearly as many users. This also means that you give up a lot of compatibility with it, because, even if you own a Mac, nearly all of your friends and family are sure to know nothing but Windows. This is basically what it boils down to for me. It's great that the GP2X is excellent for homebrew, but I doubt we're likely to see many great, original, professional games on it. And even if you own it, there aren't likely to be many people in your every day life that own it as well, so it's likely to be a lonely experience. It's doubtlessly a must-have for die-hard gamers since it's got such potential, but for everyone else, the PSP offers a great (though far from perfect) multi-purpose personal multimedia device that you can share with family and friends. In the end, neither device stands heads and shoulders above the other, it pretty much just comes down to what you personally value the most.
And I know that a lot of people say "The GP2X is cheap enough that you can buy both. You don't have to choose!" Unfortunately the answer to this is that, even if I could financially afford both, the reality is that I barely have time for my PSP as it is, and even though the PSP has a lot of restrictions on it, it's still a fairly well rounded device.
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