Is the Sony PSP a better iPod Video?

Sony just announced a $50 price drop in the PSP (Play Station Portable) to a price of $200.  After adding a little bit of storage, the PSP seems to be a superior alternative to the Video iPod from Apple which is ironic since the PSP is actually older than the iPod.

With a gorgeous wide 16:9 aspect ratio screen at 480 x 272 pixels, the PSP dwarfs the 320 x 240 on the Video iPod.  This means movies no longer need to be cropped at the sides to accommodate the iPod's lower resolution 4:3 screen.  Even more significantly, the PSP has Wi-Fi capability whereas the iPod does not.  This means that video content could easily be wirelessly streamed to the PSP with the video residing on a centralized home storage appliance potentially carrying terabytes of data.

In case someone think's I'm being biased towards Sony, I hammered the Sony PSP a year ago for not implementing good Wi-Fi security which was widely discussed in the PSP forums on the Internet.  Now that the wireless security issue has been fixed in the more recent firmware from Sony, I'm seriously considering getting one myself.  Having said that, I sincerely hope that Sony will not pull any more stupid security stunts like leaving wireless security out or deploying root-kits because I won’t be so forgiving next time.