this is actually quite interesting... imagine the possibility of have some touch screen overlay for the psp.. But i think for this sorta things to work, they would need to tie up with game developers to make use of it and then sell it in some sort of attractively priced package....
maybe when you are playing wi-fi with some one when they are out of earshot (ie different room, downstairs, your opponents deaf) but i dont see why the people couldnt just move closer, so it probabaly has a different purpose.
Twisted Metal has an infrastructiure mode. This could be very useful there. Also, the WipEout Pure browser would be wayyyyy better if you could actually type. So, this could be a very useful device.
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