I got a PSPGo as a Christmas/birthday (my birthday's right next to Christmas >.>) present last year, so I can give a view on it, completely independent of its cost. I think it is one seriously nice piece of kit. It's the size of my phone which makes it so much easier to carry (very important aspect for me), and the controls (especially the analog stick) are far superior IMO, plus you can use an actual PS3 remote with it. However, running homebrew on it is currently a bit of a pain as you have to go through the patapon demo. Of course, no UMD's. I don't really care that much; since I've still got my old 1000 and I'll never part with it, so it's not an issue personally. I use the Go when I'm out and about and I use my 1000 at home, so it works nicely for me.
Anyway, just thought I'd throw an opinion out there, since I mainly just see people who don't own one bashing it...
I didn't know KMart was still in business; all the ones around me have died. Are they still well alive in Australia, or are there just a few left? Cause if the latter's the case then it might make sense. But then, maybe KMart only went out of business around me because Walmart's got an insane hold on the market where I'm at for some reason.