As per your justifying the Pandora to friends etc., its not a device for everyone. I've had people tell me this is something they've wanted for a long time but didn't know it was available in this type of form factor. People either get it or they don't and in a world full of tablets and smart phones with more power, those who understand it seem to be the retro gamer who knows what good control feels like. I'm biased of course. But I just see the Pandora as something capable of playing thousands of games, and sure there are things like the Dingooo, GP2X, and these PSP knockoffs (or a hacked PSP itself) for a fraction of the price, however the Pandora just plays things really well. I think there is something to be said that this device is made in a place with good working conditions and standards of treatment for the employee, and some people will never understand that and could care less.
I'll end with the community, because without it, this wouldn't have ever come about, the software, OS, even the hardware with things like audio capabilities and Dave C case/DPad design. I just wonder if there is anything remotely like the Pandora and this community involvement (as well as developer access)?