I think these are the reasons why people in general doesn't like it:
1) Price: Way too high, I think all handhelds (and relative games too) should cost no more than 150€ (20€ for games). Why? Well because they offer less than a normal console (ps3,360,wii), the graphic is cool but dated and games are usually "shrinked", the offer less entertainment than a bigger game.
2) Evolution: Is, in fact, a "de-evolution". They just made a new dress for their product so they can keep the price high, giving you less. (no umds)
3) Customer care: Hey...they just tossed a tuna in your face. I bought like 10 psp games, and now? did you forget about me? What do I do with all those games? Do you want them back perhaps? what? NO? So i'm not gonna buy your new toy.
These are the reasons why I don't like it (other than the above ones ofc):
1) You say it's a portable thingie, really nice, well designed, bluetooth and all, just put a damn sim slot inside so we can use it as a cellphone, that will make it really yummy to me. Otherwise is just a shrinked version of my psp slim and you can keep it for yourself.
2) Whenever I give money for goods I want to have them in my hands, touch them, use them, collect them. Giving 30$ for a digital game is a big no no for me. Same way it works for music. Hell i love buying records with artworks and booklets and so on. Since you don't have any distribution costs I want to pay a full game no more than 10 dollars. and the old ones must be at 5$. (that's the same amount of money they do on physical media, probably they make even less).
3) Keeping it related to games: It should have been a completely new system, advanced one. Bigger and better games, better graphics. It's not so it's not worth changing device.
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