Had the PSP when it first came out (1 day after japanese release date) and then upgraed to the PSP SLIM 2 months ago.

In terms of firmware, all you need to do is upgrade to the latest version once a month (or thereabouts)

I did install a few homebrew apps of the machine but then stopped, reset it to factory settings and decided to use it only for gaming, movie viewing and internet browsing.

If you're paying AUD$295 for a next generation hand held console, I find I'd rather maximise what its meant to do rather than try to pus it to the limits.
(I know, that type of mentality is probably something not shared on these boards as most of u look to expand on technology and open your possibilities - but if in this case il stick with the idea of: if it aint broke, dont fix it)

The Universal Multimedia Discs (UMDs) are region locked, NOT the games.
There is a homebrew kludge that can get u passed this little problem but would you rather pay AUD$25 to get the disc in your own region or risk bricking ur machine?

It works well with the PS3 (can be used as a wireless controller) and u can actually sync your PSP with PS3 (provided your memory stick is big enough - 2gb minimum I would advise)

Lastly, comparing the Nintendo DS lite with the PSP is the stupidest comparison one could make in regards to gaming devices.
They both offer different gaming experiences and in terms of functionality (and PRICE tag) its apples and oranges...

You need to know what you want from your handheld before thinking about what handheld to buy.
C1oud is either a Nintendo FANBOY or not used to the sony gaming layout.
I feel the same when it comes to the Xbox series.