At E3 they couldn't start a buzz with bucket of angry hornets. It's totally DOA, they might get like 2 or three well known companies and maybe a couple of euro develoepers to make games for it but they'll buried trying to compete with the Big boys in terms of "actual" games.
The PSP dose have graphics very, very close tp PS2 quality, if not in the number of polygons it can push than in the quality of what it can DO with the polys. It will have no trouble mimicing many of the PS2s games with great effects. The DS with kill the Gamtrac(gizmondo) simply with it's name.. because frankly changing it to a stupid name like gizmondo gaurenteed this sucker's death.