Most of the people that I know complain about AT&T on their iphone.
The Iphone sold more than the psp because...
1. It is touch screen and something different.
2. It is apple
3. It is a phone not a gaming device which leaves its userbase more open
4. The I phone has its apps
5. People upgrading phones on at&t need something to upgrade to so iphone is a logical choice.

People buying the psp are just buying it because they want to play games and that it which is lower on the scale of needs and wants, because having a phone comes before a gaming device in most cases.

The psp phone would be a novelty at best because
A) Most people already have a phone and they wouldn't need another phone one it came with options such as carrier-less/contract-less and for a reasonable price. and mind you I am counting casual consumer sales not the people that wait in line for a device.

and your argument proved it best
"The Evo from HTC, the Droid X from Motorola, and all of the Galaxy S variants from Samsung, show how strong the Android operating system is, when its coupled with awesome features, and made with quality parts. "

Do you not think that there wont be any EVO II/III',Droid 3, Droid X2 and galaxy s2's not to mention various of phones to utilize android. Probably out with way better specs by the time this psp phone comes out? It would have a niche audience at best coupled with a contract and agreements one would have to pay on a monthly basis to have this device as a second phone? I would way rather buy a 3dS or a psp2 or a itouch 2 and not have to pay an extra monthly bill.

And I bet you that it will not catch on in the us that is a promise.
its Sony for one which means it will be expensive.
It will have sales... just not epic numbers like 10mill.
it might sell 500k-1mil which would not make it a competitor to the ds let alone the 3ds.