As an owner of a PSP, a Wii, and an iPhone (similar to the iPod Touch). I say go with the Wii. The PSP has by and large, been a disappointment for me, while the Wii is something that I play every day. Smash Bros. Brawl, and Mario Kart Wii have owned my life since I got them. And other great games, like Metroid Prime 3, Mario Galaxy, Zack and Wiki, Fire Emblem, Boom Blox, and No More Heros are all fantastic as well.
The PSP definitely has its share of great games, but I just can't help but feel like it's just a portable ps2 with a m... (
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