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With Sony's emphasis on graphics, 2-dimensional gaming my finally end.
I doubt 2-d gaming will go away in the significant future. To be fair, Capcom's Darkstalker's anthology is one of Sony's concessions to 2d. See Lumines also. They'll make it the exception, not the rule, but it won't be disposed of.
After getting my mits on it, its definately smaller than I expected. It does weigh more than the DS, demonstrating that they put a lot under that brick.
I have normal adult hands, and it my thumbs felt a little big on both ends. The D-pad is the typical Playstation one, as well as the face buttons. So if you didn't like it on the console, you may not like it on the portable. The psuedo-analog felt alright, and the ridged surfaces makes sure my thumb doesn't slip. Volume, brightness adjust (yes you can adjust the back light, though it has 3 or 4 settings), and other quick functions are on the bottome of the screen.
The BIOS has the typical features such as date, time, options, etc. You can turn off the the wireless if need be, and save some battery. Speaking of which, it has a utility that shows you how much you have left in percentages and in hours, so you can gauge you gaming/movie watching/MP3 listening accordingly. A small extra is that the background color changes with the month.
The screen if huge, as many other reports say, and its gorgeous. However, that means, more screen to protect. You'll proabably want to invest in some of sort protection/cleaning.
As far as the games, we'll wait and see if its just a dumping ground. As with any systems, the key's in the exclusives.
That's the actual system itself. Pretty much, you'll have to treat the the PSP as your baby, quite literaly. This is not something you want to just leave lying around. If you got the wallet and the interest, pick it up, and throw in Lumines for good measure. Otherwise, you're not missing much right now.