PSP's are definitely the best handheld out.
Some of the best features are the wifi internet capabilities, and the mp3/mp4 support.
You can watch videos, listen to your music library and surf the web on the psp. And I haven't even mentioned gaming yet.
The graphics are (in my opinion) at least twice as good as DS. You can also play multiplayer with other psp's nearby you, and psp's allover the world using infrastructure.
If you're into classic gaming you can also homebrew your psp.
with a homebrew firmware (read about it in these forums) you can get emulators for classic nes games, ps1 games, and even homemade games!
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