Yeah as a media player I thought the PSP was dope, movies off of memory cards and music worked awesome. But as a game machine it just pissed me off more than anything with it's crappy d-pad, uncomfortable analog nub, and ridiculous load times. Plus the ghosting in 3D games was pretty annoying too.
Xanadu Next does indeed rock, and I actually played the Ngage version too, haha. I'd love to have a console version of that, hell I'd settle for a Japanese PS2 version of it just so I didn't have to sit in front of my computer to play it.