I just checked on line and a 60gb iPod Photo cost $450 (30gb $350)has 15hrs of music life and 5hrs of photo life
A PSP has 8-10 music life, 2-5hrs video, ?hrs photo
now if (big IF) Sony can beat the iPod in batterylife, include a 50gb HD, keep the size (of the unit) similar, still all the features of the PSP (games included) do you really think $600 is too much to ask (considering you were willing to pay $450 for a 60gig iPod Photo)?