I have to admit, this generation is where portable gaming has really come of age. Don't get me wrong, there were some great games in the GBA era, but for the first time I'm really finding myself just tempted to sit down and play games like Ouendan 2, Ratchet & Clank Size Matters, Puzzle Quest, and Etrian Odyssey.
Most recently a game by the (seemingly randomly-generated) name of "Brave Story: New Traveler has taken up permanent residence in my PSP. Honestly it's just an all around better RPG than many of the full-fledged console RPGs I've played in the past 3-4 years. Fast paced, very attractive, clean & well explained mechanics. Sure, it maybe isn't going to give FF-X a run for the money, but it is a great RPG package I find myself turning to rather than the console RPGs I was in the middle of (Grandia 3, Baten Kaitos).
Sadly I've seen some rather dismal NPD numbers for PSP games released in the past year. While there may be market space for two "real" consoles it looks like handhelds only have room for one serious contender, and there is no question that the DS is dominant. But with games like Brave Story and the upcoming Jeanne D'Arc, my PSP has a little life in it yet...
PS. Still resisted the Bioshock demo though I feel it calling to me... so far I've just been too busy to have a nice block of time to play so we'll see if I can keep making saving throws...