Well, I'm not going to champion the reliability of any Sony product, and I think were all kind of pissed then the UMD came out and it lacked the same basic durability and protection of the Minidisc, which was fantastic and Sony themselves made.
At the same time...this guy is sort of a flim flam man. He's selling people solutions to problems that are more due to gamers being destructive slobs than the shortcomings of the UMD. I've never seen a case split, and I've never known anyone to need to clean the data surface of an actual UMD disc because there is just the tiny little hole anyway. Its %100 true that that little hole should have damn well have been designed with a door on it like the MD was, but still, don't be a slob.
Also, he's kind of fudging the facts on the "protective layer" thing. There is no "protective layer" on a CD, or DVD. The data is stamped into the back side of the disc and then lacquered, and painted. The bulk of the CD is the substrate itself. The weakest part of a CD is the label side. Now on a DVD, those are actually two really thin discs made like a CD and glued back to back. I've never gutted a UMB disc and examined it under a microscope, but I'd bet that since they are single sided that most of the silver side of the disc is the polycarbonate substrate, just like a CD.
Yeah, f*ck the PSP, its fragility is only one thing on its list of problems, but once you've committed to buying something you should damn well know is unreliable (an portable game system with a disc drive!?) then you have to treat it well.
I can only imagine how many stupid parents bought PSPs for 7 year olds that broke them the first time they put a disc in it...