I agree that it's too expensive, and I wont be getting one until its $150 or less, but your argument can be said about *any* item within the general economy. Cars, computers, etc., theyre all obsolete within a few years (well, cars dont become 'obsolete' , but you get what im saying)
And some peeps are just hardcore video gamers (like me, cept im broke) that would definitely enjoy a PSP.