This weekend, Ponzi picked up her own PSP. What won her over? Watching me watch HDTV shows on the gigantically portable screen. I think there are 10 solid reasons you'd pick a PSP instead of a Video iPod:

1. Size of the screen (Duh!)
2. WiFi enabled, TKIP keys supported
3. Replacable battery, several charging options
4. Game platform, inherently
5. Great Web browser built-in
6. Customize its background with any image
7. Does Photos, Videos, Music cheaper
8. Photo syndication gateway via PSPMM
9. Voice interactivity (allegedly) on the horizon
10. Firmware and features are updated frequently, easily

Crap. There are also 10 reasons you'd wanna buy a Video iPod instead of a PSP:

1. Better content management conduit
2. Smaller, more portable device
3. Much more storage
4. Might sync with YOUR calendar, contacts
5. Overly simplified controls
6. Wealth of add-ons / accessories
7. Your car has an integrated adapter
8. You blindly follow Apple's brand
9. A 4:3 aspect ratio is good enough for you
10. “Everybody else” has one

This won't be an easy decision for you, but I wouldn't recommend getting both for your portable entertainment device. For me, the PSP wins – hands down.