It's really going to depend on your lifestyle.
When I lived in the US, the only time I really had to use it was at home....which raised the question of, "Why are you playing games on a portable when you have a tv here?" Basically, I was either in class (and I did a pretty good job of smooshing my classes together), driving a car somewhere, or at home. No real need for a portable with that.
However, now that I live elsewhere and have to take buses or walk to places, I find my PSP to be of more use. I often listen to music/podcasts, and during those 20 minute bus-rides, I can usually polish a bit off of a game. Plus I often have some downtime between my classes, so I can get a little gaming in then. Plus there are some...other uses I have for it.
So basically, if your life is like what mine used to be (either you're busy doing something, driving a car, or at home), then I'd have to say the PS3. But if you've got frequent downtime due to your school schedule/job, a PSP might not be such a bad decision.
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